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Thousands strike at JBS facility in Colorado, raising questions about cattle prices and market volatility

More than 3,800 employees at the JBS meat processing plant in Greeley, Colorado have walked out following months of failed contract negotiations.

Ag economist Josh Maples with Mississippi State University Extension says it’s uncertain how the strike will impact cattle markets. “This is a duration matters type event,” he says. “If we see some kind of bigger disruptions here that last for a while, it’s absolutely going to have some local impacts. It’s going to have impacts on cattle in particular that are going to that plant.”

Because cattle supplies are tight and there is plenty of shackle space available, in the long run, it could mitigate any immediate negative reaction. “There may be a little bit of ability to pick up with some other plants,” he tells Brownfield.  “So, it’s going to be really interesting to see how it plays out. But again, it’s really kind of a duration thing in terms of how much impact this is actually going to have on fed cattle prices or passed down to feeder cattle prices.” 

Any long-term disruption could create additional volatility to cattle markets, however, cattle futures have been trading sharply higher Monday.

The slaughter capacity at JBS in Greeley is 5,500 head.

United Food & Commercial Workers Local 7 says workers will remain on the picket lines until JBS comes to the table to negotiate with workers and rights its unlawful union busting. UFCW 7 president Kim Cordova says JBS has insisted on poverty-level wages for workers at the plant and have offered less than 2 percent in average annual inflation in Colorado.   UFCW 7 is the largest private-sector Union in Colorado.   

JBS has not responded to Brownfield’s request for comment.