Tyson beef plant fire will be historically significant to beef producers

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.

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