Industry At A Glance: Beef Processing Gross Margins

Nevil Speer

September 17, 2012

1 Min Read
Industry At A Glance: Beef Processing Gross Margins

Packer gross margins are defined by revenue derived from meat, hide and offal sales, less the cost of a fed steer or heifer. The current tight supply of cattle has made competition especially fierce during the past 12 months. As a result, packers have experienced a prolonged period in which beef processing gross margins have been particularly challenging. In fact, the 52-week moving average crossed below $100 in August, and the sector remains under pressure.

How long can the current scenario continue before rationalization occurs within the industry? Register your thoughts on this question and the data above in the comments section below. 

About the Author(s)

Nevil Speer

Nevil Speer serves as an industry consultant and is based in Bowling Green, KY.

Nevil Speer has extensive experience and involvement with the livestock and food industry including various service and consultation projects spanning such issues as market competition, business and economic implications of agroterrorism, animal identification, assessment of price risk and market volatility on the producer segment, and usage of antibiotics in animal agriculture.
Dr. Speer writes about many aspects regarding agriculture and the food industry with regular contribution to BEEF and Feedstuffs.  He’s also written several influential industry white papers dealing with issues such as changing business dynamics in the beef complex, producer decision-making, and country-of-origin labeling.
He serves as a member of the Board of Directors for the National Institute for Animal Agriculture.
Dr. Speer holds both a PhD in Animal Science and a Master’s degree in Business Administration.

Contact him at [email protected].

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