The current small herd means pressures on producers for herd expansion, which means less culling and a lower cow slaughter. This has the potential to change the dynamics for cow plants and beef grind as well as, ultimately, the hamburger supply. Squeeze on Hamburger Earlier this year, a Rabobank report caught the attention of many in the cattle business by reporting that the U.S. had become a hamburger nation. According to the report, more than 60 percent of beef consumed in the U.S. is in this form. That led to questioning about whether the U.S. cattle industry should shift more production away from fed cattle intended to improve middle meat cuts to more emphasis on a higher percentage of cheaper beef raised for hamburger. At the t...
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...