Tyson beef plant fire will be historically significant to beef producers

[TexasTowelie]

Although Tyson has announced they will rebuild the beef harvesting facility in Holcomb, Kan., the shuttering of the plant after a fire Aug. 9 caused disruption in the market to the tune of limit down on Monday and Tuesday.

“It’s a disaster. This is our tsunami,” said Herreid, S.D., cattle feeder Herman Schumacher.

Recalling specific moments throughout history when the market crashed — Nixon’s 1973 beef “freeze,” the 1986 dairy buyout and the 2003 BSE cow — Schumacher said there was a common element with each market crash. Beef got cheaper for the consumer. “The product reflected the cattle market,” Schumacher said.

Last week’s activity didn’t follow suit — according to Schumacher, the reported price for a choice carcass went up almost $200 per carcass while the active bidding for a finished steer went from about $1.84 per pound “in the beef” to about $1.70 per pound, or a drop of about $130 per head.

Read more: https://www.thefencepost.com/news/tyson-beef-plant-fire-will-be-historically-significant-to-beef-producers/