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Capacity Constraints in U.S. Beef Supply Chain - AG INFORMATION NETWORK OF THE WEST

Capacity Constraints in U.S. Beef Supply Chain Wednesday May 12th, 2021 Black swan events gathered much blame for poor prices and margins, yet, even without the pandemic and a packing plant fire, packers held market leverage as processing capacity was often stretched to its limits. Adding packing capacity would result in both a larger U.S. beef industry and more balanced profitability throughout the supply chain, RaboBank’s food and agriculture division said last fall. “If such expansion can be achieved through in-plant technology improvement and new, consumer demand-driven small and medium-sized plants, profitability will be more evenly distributed throughout the beef and cattle supply chain,” according to Dustin Aherin, RaboBank analyst.

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Beef plant expected to open next year

Beef plant expected to open next year
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