Livestock Markets Jolted by Tyson Beef Plant Fire
- Retail buyers are in a bidding frenzy, fearing shortfalls
- Pricier beef may be coming to consumers sooner than expected
Source: Getty Images
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A fire at a major U.S. beef processing plant earlier this month is upending American livestock markets, slamming cattle prices while benefiting meatpacking companies.
The Tyson Foods Inc. plant in Holcomb, Kansas, had the capacity to slaughter 6,000 head a day of cattle -- or about 5% of U.S. beef production capacity -- before it was destroyed on Aug. 9. The facility’s shutdown has created a livestock glut, dragging down futures to the lowest in almost three years. That’s giving meatpackers such Cargill Inc., JBS SA and Marfrig Global Foods SA access to cheap supply just as demand from retail shops booms.