Uploaded August 2026 | Updated September 2026, 2 weeks ago
Recent packing plant closures or possible sales in the U.S. are shifting the balance of leverage across the North American cattle sector, bringing processing capacity much closer to current livestock supplies.
In this video interview, Shaun Haney is joined by Brenna Grant, head analyst at Canfax, to discuss how recent processing closures—including Tyson's immediate shutdown of its Jocelyn, Illinois plant and the planned sale of its Pasco plant—are impacting market dynamics and Canadian producers.
Grant says that while the industry expected consolidation throughout 2026 due to shrinking herds, the sudden nature of the latest announcements created live cattle futures volatility. U.S. fed cattle harvest dropped from approximately 510,000 head per week in 2022 to 440,000 head per week in 2026, creating capacity underutilization and driving packer losses for the last 18 months. "What's probably surprising about this one (Tyson's) is the immediacy of it," says Grant. "As we look at the capacity that is being closed, this brings us much closer to current supplies."
Eastern Canadian cattle feeders face direct shifts as Ontario producers adjust to the loss of key slaughter outlets, including in Souderton, Pennsylvania where JBS announced in June it would stop slaughtering cattle, but continue further processing.
Meanwhile, the cow-calf sector currently holds the highest share of the retail dollar in over 25 years. The Canadian cow-herd has stabilized and could be growing, but we are a tiny bug on the back of an elephant (the U.S.) when it comes to cow-herd numbers. Grass growing conditions in the U.S. have been poor to very poor in many cattle producing areas and that has hampered any re-build of the cow herd, Grant says.
With capacity tightening, Grant says that this shifts the leverage back toward processors. When a packer closes plants or cuts a shift, it means that the minimum number of cattle that a packer needs to bid on each week is smaller than what it used to be prior to the announcement, changing the leverage dynamic of the sector.
Website: realagriculture.com
#farming #ranching #beef #cattle #agriculture
Find us on our other social media platforms:
X/Twitter: twitter.com/realagriculture
Instagram: instagram.com/realagriculture
Facebook: facebook.com/realagmedia
Recent packing plant closures or possible sales in the U.S. are shifting the balance of leverage across the North American cattle sector, bringing processing capacity much closer to current livestock supplies.
In this video interview, Shaun Haney is joined by Brenna Grant, head analyst at Canfax, to discuss how recent processing closures—including Tyson's immediate shutdown of its Jocelyn, Illinois plant and the planned sale of its Pasco plant—are impacting market dynamics and Canadian producers.
Grant says that while the industry expected consolidation throughout 2026 due to shrinking herds, the sudden nature of the latest announcements created live cattle futures volatility. U.S. fed cattle harvest dropped from approximately 510,000 head per week in 2022 to 440,000 head per week in 2026, creating capacity underutilization and driving packer losses for the last 18 months. "What's probably surprising about this one (Tyson's) is the immediacy of it," says Grant. "As we look at the capacity that is being closed, this brings us much closer to current supplies."
Eastern Canadian cattle feeders face direct shifts as Ontario producers adjust to the loss of key slaughter outlets, including in Souderton, Pennsylvania where JBS announced in June it would stop slaughtering cattle, but continue further processing.
Meanwhile, the cow-calf sector currently holds the highest share of the retail dollar in over 25 years. The Canadian cow-herd has stabilized and could be growing, but we are a tiny bug on the back of an elephant (the U.S.) when it comes to cow-herd numbers. Grass growing conditions in the U.S. have been poor to very poor in many cattle producing areas and that has hampered any re-build of the cow herd, Grant says.
With capacity tightening, Grant says that this shifts the leverage back toward processors. When a packer closes plants or cuts a shift, it means that the minimum number of cattle that a packer needs to bid on each week is smaller than what it used to be prior to the announcement, changing the leverage dynamic of the sector.
Website: realagriculture.com
#farming #ranching #beef #cattle #agriculture
Find us on our other social media platforms:
X/Twitter: twitter.com/realagriculture
Instagram: instagram.com/realagriculture
Facebook: facebook.com/realagmedia
