The reduction in the number of cattle in the United States reduces the profits of meat processors

Large meatpacking companies in the US are suffering from high livestock prices. American cattle producer Brad Kuima has repeatedly turned down offers from meat processors seeking to buy his cattle to wait for higher prices. did not receive offers as the COVID-19 outbreak caused many meatpacking plants to shut down, making it difficult to sell livestock. Currently, the number of beef cows in the US is the lowest since 1962. The drought and high feed prices forced producers to send animals to the slaughterhouse instead of leaving them for breeding. Cattle fatteners now have an advantage in sales negotiations with market-dominant meat producers such as Tyson Foods, Cargill and JBS USA. Cattle prices are driving down meatpacking profitability. Meat processors are likely to try to pass their costs on to buyers by raising the price of ground beef and steaks, analysts said. consumer appetite for higher beef prices, company executives said. “The unknown factor is demand: how much will the ...