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Added meat packing capacity should benefit cattle producers

A past president of the Illinois Beef Association says increased harvest capacity in the cattle industry means opportunity for producers.

Dr. Paul Walker tells Brownfield, “That should mean we have increased demand for fat cattle.”  He says, “If you have increased demand, that should mean you have increased number of buyers; increased buyers should mean higher prices.”

But, he says the caveat to that is packers are currently only operating at about 80% capacity.

“Because we’re in the downside of the cattle cycle, not enough that cattle coming to market.”  He says, “If they’re not operating at capacity, you really don’t have any more demand on that side.”

Walker says continued strong consumer demand and relatively tight cattle supplies are driving the current highs in the cattle market.

He says new packaging plants coming online this year in Missouri, Nebraska, Illinois, and Texas greatly bolster the industry’s capability for long-term growth.  

Dr. Paul Walker – Illinois Beef Association past president