More US Beef Plants Could Close as Cattle Supply Tightens
More US Beef Plants May Close as Cattle Herds Keep Shrinking
Further closures of US beef processing facilities are increasingly likely as cattle numbers continue to fall, tightening livestock supply and undermining plant utilisation, according to analysis reported by Farm Progress.
Industry analyst Hyrum Egbert has warned that at least one additional large beef plant, along with several regional processing facilities, could shut down within the next 18 months if current supply pressures persist. The risk stems from sustained contraction in the US cattle herd, which has reduced throughput and eroded margins for processors.
The US herd has fallen to its lowest level in decades, following prolonged drought, high input costs and slower herd rebuilding. As a result, plants are increasingly competing for fewer cattle, driving up procurement costs while leaving fixed processing capacity underutilised.
Source article: Farm Progress | 22 December 2025
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