Cattle market cure? More packing plant capacity
One of the critical factors affecting the cattle market is lack of packing capacity for fed cattle. But how much more chain space does the beef business need?
We need to add about 5,000-6,000 head per day more plant capacity, says Dustin Aherin, protein analyst with Rabo AgriFinance. It could come from existing plants, but it could also come from new construction.
It has to be driven by economics and profitability, he said at the recent Feeding Quality Forum. Small to medium sized plants that specialize in niche markets with 1,000-2,000 head per day capacity, could fill the gap, according to the Oklahoma Farm Report.
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