Processing problems hit beef producers
US - High corn prices and not enough processing plants have produced an oversupply of cattle, causing feedlot headaches for Pacific Northwest beef producers.Cattle can gain three to five pounds a day in a feedlot and only bring about $20 a head in total profit, so they have to be sold quickly when they are ready.
"The losses are just huge," said Rod Van de Graaf, co-owner of a large feedlot in Sunnyside. "We are just trying to hold on."
Van de Graaf said he feeds about 240 tons of corn a day, and he's got hundreds of cattle milling around that should already have been shipped to market.
Don Beus, owner of a Pasco-area feedlot and cow-calf operation, said he's been trying to watch his cattle so they don't gain too much weight as he waits to sell them.
The closure of a Tyson Foods Co. processing plant near Boise, Idaho, is forcing ranchers in Idaho and Oregon to ship their cattle to a Pasco plant, ranchers said.
Source: HeraldNet