Not Good News for the Cattle Industry

“Not good news for the cattle industry.” That’s how Stephen Koontz, livestock economist at Colorado State University, summed up the latest figures on packer profitability. Koontz believes there are more shutdowns of beef processing facilities to come. According to Koontz, the revenue from beef and byproduct sales minus the cost of finished cattle — a processing facility’s gross margin — was below $200 per head for much of 2025. In February it was negative, but it did recover in March to reach around $250 per head. Estimates suggest it costs between $285-$365 per head to cover labor, facilities, supplies, equipment, and management expenses with operating a facility. Thus, packers were likely losing money through much of 2025 and into 2026. Koontz says the negative earnings will mean more facility closings. Nebraska has already lost the Tyson facility in Lexington. Hopefully, it will avoid additional closings.

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