Beef prices going up????

[Davy Crockett]

So it looks like we need more cattle producers. I would think that should be easy for this country, but what are some of the hurdles?

It's easier to sit in a tractor or combine for an extra day or two in a year than it is to feed cattle year around. My renter runs about 400 head and is a good sized grain farmer, they are busy 365 days out of the year.

 

[Sluggo]

Way more land used for farming now days than raising livestock. You’d think if raising beans and corn for cash on 10-20 quarters wasn’t paying off, one would consider switching gears and raising livestock on some of it. Like others have said tho, grain farming is less of a time commitment than livestock.

 

[Fester]

So it looks like we need more cattle producers. I would think that should be easy for this country, but what are some of the hurdles?

$3k or more an acre....

 

[Pheasant 54]

I have a couple farmer/rancher friends that sold their whole herds due to price ,told me the price was too good to pass up these guys do not go south for the winter either

 

[NDSportsman]

$426M Tyson Beef Collapse Shuts Nebraska’s Biggest Plant—Entire Town Loses 4,900 Workers
Tyson Foods officially announced the permanent closure of its massive beef processing facility in Lexington, Nebraska. This decisive move will result in the elimination of approximately 3,200 jobs when the gates close in January 2026.
Executives stated that shrinking cattle supplies made the closure inevitable, marking a devastating end to a factory that has anchored the local economy for over three decades.

The restructuring efforts extend well beyond Nebraska, impacting operations across the company's beef network. Tyson is simultaneously reducing its Amarillo, Texas, facility to a single daily shift, affecting an additional 1,700 workers.

When combined, these aggressive measures impact nearly 4,900 employees total, effectively removing about 9% of the company’s total beef slaughter capacity in a single strategic maneuver.

This shutdown represents a significant turning point for the "Big Four" meatpackers, who control 85% of the American market. After years of maintaining excess capacity to capture market share, the industry is finally contracting.

Tyson is the first major player to blink, acknowledging that the current agricultural cycle can no longer support the massive infrastructure built during boom times.

Recent financial reports highlight the severe economic pressure driving this decision. Tyson’s beef segment reported a shocking adjusted operating loss of $426 million for the 2025 fiscal year.

This represents a dramatic collapse for a division that was historically the company’s primary profit engine, forcing leadership to take immediate, drastic action to stop the significant financial bleeding.

The corporate outlook for the coming fiscal year offers little hope for immediate recovery. Tyson projects its beef segment will lose an additional $400 million to $600 million in fiscal 2026.

With operational costs rising by billions of dollars year-over-year, the company determined that it simply cannot afford to keep older, less efficient plants running while bleeding cash every quarter.

Despite the devastating news for workers, financial markets reacted positively to the restructuring plan. Tyson’s stock price climbed approximately 7% following the announcement, as investors welcomed the focus on efficiency.

Analysts view the capacity reduction as a necessary correction that will ultimately improve margins at the remaining plants by eliminating the overhead costs associated with underutilized facilities.

The fundamental driver of this collapse is an unprecedented shortage of livestock. The U.S. cattle herd has plummeted to 86.7 million head, hitting its lowest level in over seventy years.

Persistent drought conditions across the Great Plains withered pastures and spiked feed prices, forcing ranchers to liquidate their herds rather than face bankruptcy, leaving packers with empty feedlots.

Rebuilding the national herd is a slow biological process that cannot be artificially accelerated. Because ranchers must retain female cattle for breeding instead of sending them to slaughter, the immediate beef supply will tighten even further.

Experts warn that meaningful inventory recovery will not occur until 2027, ensuring that processing plants will continue fighting for scarce livestock.

The scarcity of available cattle has driven purchase prices to record highs, crushing processor margins. Tyson reported that its cost of goods sold increased by nearly $2 billion, primarily driven by the high cost of livestock.

With too many factories competing for a shrinking pool of animals, the industry reached a breaking point where closing plants became the only viable financial option.

For the small community of Lexington, the closure is nothing short of an economic catastrophe. The plant employs nearly one-third of the city's 11,000 residents, serving as the region's financial heartbeat.

Local leaders described the announcement as a "gut punch," noting that every business, from car dealerships to grocery stores, relies heavily on the wages generated within the plant.

The closure threatens to unravel decades of unique demographic growth in rural Nebraska. The plant attracted thousands of immigrant workers over the course of thirty years, creating a diverse community that is now nearly 50% Hispanic.

Families who moved there for stable union jobs now face displacement, threatening to hollow out the town as workers are forced to move elsewhere.

The local school district is bracing for a potential exodus of students next semester. Administrators estimate that up to half of the 3,000 enrolled students could leave if their parents relocate for work.

Such a drastic decline in enrollment would severely reduce state funding, potentially leading to school closures and exacerbating the long-term economic disaster facing the community.

American consumers are feeling the pain alongside the workers, though in a different way. Beef prices at grocery stores have surged to record highs, with ground beef surpassing $6 per pound.

While packers lose money due to operational inefficiencies, families are paying 17% more for steaks than last year, creating a painful disconnect between corporate losses and checkout prices.

Despite these soaring prices, consumer appetite for beef remains surprisingly resilient across the country. Americans spent over $40 billion on fresh beef in 2024, despite inflation, refusing to cut back significantly.

However, this strong demand was not enough to save the Lexington plant, as the structural costs of the cattle shortage simply outweighed the revenue from higher prices.

As the January deadline looms, thousands of workers face a difficult and uncertain future. Tyson has promised job fairs and relocation assistance to other facilities, but moving requires uprooting entire families.

For many in Lexington, the choice is between leaving the community they love or facing unemployment, a stark reality created by a $426 million corporate loss.

Meanwhile....

Tyson Foods CEO Donnie King's total compensation for fiscal year 2024 was $22.77 million, which includes a base salary of approximately $1.45 million and a bonus of nearly $6 million. The remaining compensation came from stock and options awards, which totaled around $14.76 million.

 

[measure-it]

Donny King, Tyson's CEO is hardly worth $22.77 M a year!
Who the hell does he think he is......a pro football player?
Sarcasim.

 

[Sluggo]

Why do people take issue with CEOs making big bucks?

 

[Prairie Doggin']

Why do people take issue with CEOs making big bucks?

Probably because oftentimes they get big bonuses even as the company is headed down the shitter.

 

[Fester]

Probably because oftentimes they get big bonuses even as the company is headed down the shitter.

Rewarded for tanking a company while the employees pay the real price...

 

[lunkerslayer]

https://www.producer.com/livestock/tyson-to-close-beef-plant-as-supplies-dwindle/

 

[Maddog]

Probably because oftentimes they get big bonuses even as the company is headed down the shitter.

Yep doesn't pass the smell test. At all.

 

[Rowdie]

 

[NDbowman]

We have purchased directly from a rancher annually for many years. It is an easy process that provides great quality beef tailored to the cuts we enjoy. Have wondered why the ranchers don't attempt to scale up with local processors to meet demand rather that continue to rely on larger packing operations.

I can tell you why I don't. I watched my Dad finish out holstein steers when he milked cows. He sold finished steers to a guy who owned a processing barn and then that guy would sell the finished animals to a consumer who would then pay him to process them. That worked ok for my Dad, but it was always tricky to have them ready at the right time. Dad also sold beef to relatives and local people. Usually 1/2s and 1/4s. That was ok, but he had alot of relatives stiff him over the years. Dad was to trusting and allowed people to pay him later.
Now today I raise beef cattle and I finish one for myself and that is it. I've finished some and sold some meat but it seems most people think you should basically give it to them. They can't figure out what I can sell a steer and not fatten it out. They don't realize the cost of the feed to get that animal to slaughter weight. Also I've got two trips to the slaughter barn. One to haul the animal there and another to pick it up. Then I might have to put the boxes of meat in a deep freeze at home if said buyer isn't ready to get it when he said he would. Its just kind of a pain in the ass and don't really make much money. I also used to fatten some animals for a couple of guys, they would come and I'd shoot them, they'd gut em and take em home to cut up themselves. That worked ok for awhile, then as the market started to come up and I asked for a higher price, they haggled on me to get them cheaper, I gave in and thought this is the last time I'm fattening a steer for anyone but myself.
I do know of two ranches that are fattening their own cattle, having them slaughtered at a federally inspected barn, then selling the meat direct to consumers and one is even selling to a couple of restuarants. I'm glad it works for them but I doubt they're making much. Hauling them animals in to be slaughtered and then back to pick up the meat, storing it on farm, then hauling it all over to sell it sounds like a heck of alot of work when my day is already filled up with chores, fixing, and all the other fun stuff that goes along with owning cattle.

 

[wslayer]

^^^^ totally understood, relatives want for free. Doesn't quite work that way.

 

[bucksnbears]

I can tell you why I don't. I watched my Dad finish out holstein steers when he milked cows. He sold finished steers to a guy who owned a processing barn and then that guy would sell the finished animals to a consumer who would then pay him to process them. That worked ok for my Dad, but it was always tricky to have them ready at the right time. Dad also sold beef to relatives and local people. Usually 1/2s and 1/4s. That was ok, but he had alot of relatives stiff him over the years. Dad was to trusting and allowed people to pay him later.
Now today I raise beef cattle and I finish one for myself and that is it. I've finished some and sold some meat but it seems most people think you should basically give it to them. They can't figure out what I can sell a steer and not fatten it out. They don't realize the cost of the feed to get that animal to slaughter weight. Also I've got two trips to the slaughter barn. One to haul the animal there and another to pick it up. Then I might have to put the boxes of meat in a deep freeze at home if said buyer isn't ready to get it when he said he would. Its just kind of a pain in the ass and don't really make much money. I also used to fatten some animals for a couple of guys, they would come and I'd shoot them, they'd gut em and take em home to cut up themselves. That worked ok for awhile, then as the market started to come up and I asked for a higher price, they haggled on me to get them cheaper, I gave in and thought this is the last time I'm fattening a steer for anyone but myself.
I do know of two ranches that are fattening their own cattle, having them slaughtered at a federally inspected barn, then selling the meat direct to consumers and one is even selling to a couple of restuarants. I'm glad it works for them but I doubt they're making much. Hauling them animals in to be slaughtered and then back to pick up the meat, storing it on farm, then hauling it all over to sell it sounds like a heck of alot of work when my day is already filled up with chores, fixing, and all the other fun stuff that goes along with owning cattle.

Good explanation.

I heat with with wood. It's amazing how many people want a " few chunks". They think just because wood is free, there is no expense in it.

 

[Fester]

I can tell you why I don't. I watched my Dad finish out holstein steers when he milked cows. He sold finished steers to a guy who owned a processing barn and then that guy would sell the finished animals to a consumer who would then pay him to process them. That worked ok for my Dad, but it was always tricky to have them ready at the right time. Dad also sold beef to relatives and local people. Usually 1/2s and 1/4s. That was ok, but he had alot of relatives stiff him over the years. Dad was to trusting and allowed people to pay him later.
Now today I raise beef cattle and I finish one for myself and that is it. I've finished some and sold some meat but it seems most people think you should basically give it to them. They can't figure out what I can sell a steer and not fatten it out. They don't realize the cost of the feed to get that animal to slaughter weight. Also I've got two trips to the slaughter barn. One to haul the animal there and another to pick it up. Then I might have to put the boxes of meat in a deep freeze at home if said buyer isn't ready to get it when he said he would. Its just kind of a pain in the ass and don't really make much money. I also used to fatten some animals for a couple of guys, they would come and I'd shoot them, they'd gut em and take em home to cut up themselves. That worked ok for awhile, then as the market started to come up and I asked for a higher price, they haggled on me to get them cheaper, I gave in and thought this is the last time I'm fattening a steer for anyone but myself.
I do know of two ranches that are fattening their own cattle, having them slaughtered at a federally inspected barn, then selling the meat direct to consumers and one is even selling to a couple of restuarants. I'm glad it works for them but I doubt they're making much. Hauling them animals in to be slaughtered and then back to pick up the meat, storing it on farm, then hauling it all over to sell it sounds like a heck of alot of work when my day is already filled up with chores, fixing, and all the other fun stuff that goes along with owning cattle.

Curious how much should be made off a full beef. Like after its all said and done how much should the rancher put in his pocket? Asking because i have zero idea about beef/raising/selling/prices etc.

 

[riverview]

any quarters or half's i have bought from pvt cattle men I paid the butcher for everything when i was called to pick it up. So only talked to the rancher once.

 

[Rowdie]

I bought a 1/4 once from my niece. I had to pay butcher. It's too bad it wasn't always that easy. It'd be nice if ranchers, consumers and butchers could come together and cut out the Packers. Especially in rural areas like the Dakotas.

 

[Wirehair]

any quarters or half's i have bought from pvt cattle men I paid the butcher for everything when i was called to pick it up. So only talked to the rancher once.

We do the same. We have had a good working relationship with rancher over the years.

 

[SDMF]

Some years ago the legislature passed laws relaxing some regs on cottage industry for pies, pickles etc. Meat is different. Not much room for error. When the idea was floated to include meat products a bit in that cottage industry Bill, the legislators and public said no thank you.

You can take ground meat into a business/butcher shop and have sausage, or something made but it is not for resale. Custom Exempt. If you want to sell a product it has to start with a live kill floor and meat inspector. The carcass gets a stamp called a bug. Most local businesses purchase it that way in a box. It is chilled. Chilled meat is preferred over frozen. We all know why. However, chilled meat doesn't have that long of a life.

Everything turns into an assembly line. If a rancher doesn't have access into that pipeline, then they are on the outside looking in. Below are the only live kill floors in North Dakota. Call any one of them a tell them you have a finished animal ready to go. Go.... as in right now. Not going to happen. They are booked six months to a year out.

North Dakota Meat Processors​

Heart of Dakota Packing and Wollman Ranch are not licensed meat processing establishments​

STATE SLAUGHTER​

These establishments slaughter livestock and may process meat products under regulated inspection. Products contain the state mark of inspection and are eligible to be wholesaled within North Dakota. Some State Slaughter plants also provide custom exempt slaughter and/or processing services.

COMPANY	BOX / ADDRESS	CITY	STATE	ZIP
BOWDON MEAT PROCESSING	PO BOX 60	BOWDON	ND	58418
BARTON MEATS INC.	1020 N 11TH ST	CARRINGTON	ND	58421
MAPLE VALLEY LOCKERS INC.	218 4TH AVE	ENDERLIN	ND	58027
MYERS MEATS & SPECIALTIES, INC.	1 CESSNA DR	GARRISON	ND	58540
SCHWEITZER'S GOURMET MEATS	23881 MOFFIT RD	MOFFIT	ND	58560
MEMA'S MEATS	28525 86TH AVE NW	BERTHOLD	ND	58718
CUSTOM KUT MEAT INC.	271 66TH AVE NE	CARRINGTON	ND	58421
PEARSON'S GREEN ACRES	11050 318 AVE NE	WILTON	ND	58579
1481 MEATS INC	692 81ST ST N	UPHAM	ND	58789
LUCY STARZ, LLC	14911 29TH ST SE	AMENIA	ND	58004
NODAK MEATS, LLC	2528 37TH ST SE	STEELE	ND	58482

FEDERAL SLAUGHTER​

These establishments slaughter livestock and may process meat products under regulated inspection. Products contain the USDA mark of inspection and are eligible to be wholesaled in all states within the United States. Some Federal Slaughter plants also provide custom exempt slaughter and/or processing services.

COMPANY	BOX / ADDRESS	CITY	ST	ZIP
CASSELTON COLD STORAGE	PO BOX 368	CASSELTON	ND	58012
RHINO MEAT PROCESSING LLC	112 1ST AVE N	ESMOND	ND	58332
FAIRMOUNT LOCKERS	PO BOX 151	FAIRMOUNT	ND	58030
NDSU, ANIMAL SCIENCE DEPT.	PO BOX 6050, DEPT 7630	FARGO	ND	58108
LANGDON LOCKERS	324 6TH ST	LANGDON	ND	58249
NORTH AMERICAN BISON, LLC	PO BOX 672	NEW ROCKFORD	ND	58356
6 IN 1 MEATS, LLC	401 SOUTH 1ST ST	NEW SALEM	ND	58563
THE BUTCHER SHOP, INC.	421 3RD ST S	OAKES	ND	58474
VALLEY MEAT SUPPLY	1269 W MAIN ST	VALLEY CITY	ND	58072
SPRUCE HILL MEATS, LLC	8556 147TH AVE SW	BOWMAN	ND	58623
YELLOWSTONE RIVER BEEF	6 E DAKOTA PARKWAY	WILLISTON	ND	58801
WHALEN'S MEAT PACKING LLC	9214 HIGHWAY 21	MOTT	ND	58646
KRAMLICH - DEEDE MEATS	510 SCHOOL ST SE	MEDINA	ND	58467

You missed Butcher’s Edge in Edgeley ND:

https://butchersedgellc.com/