Too Many Plants, Not Enough Cattle

An article on Drovers

JBS USA’s decision to inject $30 million into its Souderton, Pa., facility — reversing a planned closure to transition the historic site from a slaughterhouse into a case-ready packaging plant — is far more than an isolated corporate pivot. Instead, it exposes a painful industry reality: A severe beef capacity squeeze. Squeezed by a 75-year-low cattle supply on one side and skyrocketing operating costs on the other, packers nationwide are realizing that current slaughter capacity simply no longer fits the math of today’s market.

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