Cattle ban at the border sparks beef shortages and plant closures

"American beef plants are under threat as the number of cattle destined for their facilities stays far below historical levels, reflecting the smallest herd in more than half a century. Cattle placed in feedlots, where animals are fed until ready to be slaughtered, are expected to have dropped in November to the lowest levels for the month since 2015, according to a Bloomberg survey of analysts."

"The situation, exacerbated by an ongoing halt of Mexican cattle shipments to prevent the spread of the deadly screwworm pest, is a major stress for beef processors that are operating at a loss. Tyson Foods Inc., the country's biggest meatpacker, underscored the difficulties for the industry last month as it announced it would close a Nebraska beef plant and reduce operations to one shift at a facility in Texas, roughly 450 miles from the Mexican border."

U.S. cattle supplies are at multi-decade lows, with feedlot placements hitting their weakest levels for October and November since at least 2015. A halt on Mexican cattle imports to prevent screwworm spread has worsened shortages, leaving many processors undersupplied and operating at a loss. Major packers have already reduced operations and closed plants, and additional regional closures are possible over the next 18 months. Reduced slaughter capacity and tight cattle availability are sustaining elevated beef prices for consumers. Reopening the southern border to Mexican cattle and rebuilding the depleted U.S. herd are seen as critical steps to restore supply and ease prices.

Read at Los Angeles Times