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Ag economist says beef processing capacity limiting cattle industry profitability
Northern Ag Network/Oklahoma State Extension/RaboBank/DTN/DroversMay 17, 2021Agriculture News
MPR, Photo by Stephanie Paige OgburnAdditional packing capacity in the U.S. beef industry could help to more evenly balance profitability through the supply chain, says ag economist Derrell Peel.
STILLWATER, OK – Current cattle market conditions present a lot of frustration to cattle producers. Boxed beef prices are on the rise, back to their highest levels since June of 2020. However, cattle prices have been under a lot of pressure for the past six weeks. A lot of the blame for cattle prices can be chalked up to drought and high corn prices, but the leverage position of the industry heavily favors the packing segment over cow-calf producers and feeders.