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.
Missouri Prime Beef Packers expands in Pleasant Hope
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Missouri Prime Beef Packers, producers of high quality beef that operate production facilities and a beef marketing firm, announced extensive upgrades and modifications to their existing 100,000 sq/ft facility to accommodate for beef processing. The facility had previously been used as a pork processor. This expansion represents an investment of $10 million and is expected to create 225 jobs in the area.
“It’s always exciting to see Missouri grown companies succeed,” Governor Mike Parson said. “Missouri Prime Beef Packers is an excellent Missouri company that values its employees, products, and customers. This expansion is great news not only for the Pleasant Hope community but for the entire state of Missouri.”