Feedlot numbers, packing plant closures and beef imports point to continued adjustments across the cattle industry
Published August 25, 2026
LAKEWOOD, Colo. — Tight cattle supplies and strong consumer beef demand are forcing changes throughout the cattle industry, according to Kansas State University livestock economist Glynn Tonsor.
The latest signals include fewer cattle entering feedlots, packing plant closures and a temporary change in beef import policy.
USDA’s August Cattle on Feed report showed 11.1 million cattle in large feedlots on Aug. 1, an increase of 2% from last year. However, July placements dropped 11% to 1.42 million head while marketings fell 7% to 1.62 million head.
Tonsor said the placement total provides additional evidence that fewer cattle are moving through the production pipeline.
Feedlots have responded by keeping cattle longer and adding more weight before slaughter. Kansas State’s Focus on Feedlots data shows the average weight added per steer increased from 539 pounds in 2010 to 719 pounds in 2025. Average days on feed rose from 149 to 196 during the same period.
Those heavier cattle allow the industry to produce more beef from a smaller supply of animals.
Packers Reduce Processing Capacity
Meatpackers are also adjusting to the nation’s smaller cattle herd.
Tyson Foods announced plans to close its beef plant in Joslin, Illinois, which processes approximately 3,000 cattle per day. The company also plans to close a case-ready facility in Eagle Mountain, Utah, and offer its Pasco, Washington, beef plant for sale.
Those decisions follow other packing plant closures in Lexington, Nebraska, and Souderton, Pennsylvania.
Tonsor said much of the nation’s beef processing system was built when cattle inventories were considerably larger. With fewer cattle available, packers have been competing for a limited supply while facing continued financial pressure.
Reducing capacity allows remaining plants to operate with higher daily volumes, but closures can also create transportation and marketing challenges for cattle producers.
Beef Import Policy Adds Volatility
President Donald Trump announced Aug. 21 that the administration would temporarily waive out-of-quota tariffs on as much as 300,000 metric tons of imported ground beef.
That amount represents about 2.5% of the beef consumed annually in the United States.
Details involving eligible countries, prices and the timing of shipments remained unresolved. Tonsor said the additional volume would likely have only a limited effect on retail beef prices.
Cattle futures dropped sharply following the announcement before recovering much of the decline by the market close. The reaction demonstrated how unexpected policy decisions can create immediate volatility for livestock producers.
High Prices Encourage Herd Expansion
Record calf prices are giving cow-calf producers a strong financial incentive to rebuild the nation’s cattle herd. However, high operating costs and uncertainty surrounding government policy continue to make some producers hesitant to retain heifers or expand their operations.
The same uncertainty could also discourage future investment in packing capacity once cattle numbers begin recovering.
Tonsor said current prices are sending clear signals throughout the industry. High cattle values reflect limited supplies, packing plant closures reflect excess processing capacity and beef imports reflect strong consumer demand for ground beef.
Attempts to weaken those signals may provide temporary relief, but they can also delay the herd rebuilding and processing adjustments needed for the market to regain balance.
Tonsor’s conclusion from the recent string of cattle industry developments is straightforward: Let markets work.
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