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Fire at Kansas beef packing plant sends ripples across fed cattle market

An ag economist describes the recent fire at a Tyson beef packing plant in Kansas as a “ripple on the pond” for the fed cattle market.

Glynn Tonsor says the indefinite closure of the Holcomb facility will reduce total U.S. processing capacity 5 to 6 percent.

“We’ll probably see the most downward pressure immediately in Kansas, with less as we dissipate out. Mainly because the further you get from that location, you’re going to have less supply-chain response.”

He estimates the Tyson Holcomb plant harvested about 6,000 head per day.

Tonsor tells Brownfield after Friday’s fire, the cost of processing cattle went up.

“What I mean by that is cattle that previously would’ve been handled by the Holcomb plant are going to get redirected elsewhere. So multiple plants will be asked to pick up that additional volume. That’ll be extra shifts, or extra hours.”

He says higher operating costs decrease demand for fed cattle, pressuring the market while increasing the price of retail beef.

The cause of the fire and the extent of the damage are unknown.  No injuries were reported.