The Beef Price Increase

Featured Story

BY SRH

and Another Planned Pandemic…

A crackdown on federal immigration enforcement in southwest Kansas has thrown a wrench into the U.S. beef supply chain, causing major slowdowns at processing plants, leaving thousands of cattle stranded at feedlots and potentially driving up consumer meat prices.

Cattle slaughter in the U.S. decreased by 16% to an estimated 90,000 head on Thursday, September 24, due to widespread workforce absenteeism stemming from concerns over Immigration and Customs Enforcement (ICE) operations. By Friday, slaughter numbers remained 14% below the previous week’s levels, translating into millions of dollars in lost revenue for producers whose animals are suddenly backed up.

The disruptions are centered in the Kansas “Golden Triangle” of commercial beef packing, which encompasses Dodge City, Liberal, and Garden City. This rural region is home to massive facilities operated by Cargill, Tyson Foods, and National Beef. Collectively, these plants process roughly 24,000 head of cattle per day, representing more than 20% of daily U.S. fed-cattle slaughter capacity.

Agricultural groups, including the Kansas Livestock Association, Texas Cattle Feeders Association, and Oklahoma Cattlemen’s Association, warned that the unannounced enforcement actions are creating supply-chain choke-points from feed-yards to processors. In a joint statement, the organizations stated that the presence of ICE has caused a significant chilling effect on the legal, documented, skilled workers who contribute to the beef supply chain and ensure its continuity.

The Department of Homeland Security has pushed back against characterizations of the sweeps as worksite raids. “ICE is not conducting worksite operations in Kansas,” Homeland Security Secretary Markwayne Mullin said, adding that agents are targeting “heinous criminals, including murderers, rapists, and drug traffickers and illegal aliens with final orders of removal.” However, the heavy presence of federal agents near packing plants and in local communities has kept many of the region’s agricultural workers at home.

Local officials from Dodge City, Garden City, and Liberal reported receiving no advance notice of the federal operation. “When ICE operates in Kansas, it needs to coordinate with our local law enforcement,” said Sen. Roger Marshall, who, along with fellow Kansas Republican Sen. Jerry Moran, has pressed DHS on the operation. “Our community resembles a ghost town,” Liberal’s vice mayor told Reuters. “Businesses are not open because people are scared to leave their homes.”

The labor shock arrives at a particularly sensitive time for the cattle market. Driven by prolonged drought, the U.S. cattle herd has shrunk to its smallest size in roughly 75 years. This historically tight physical market caused cattle futures to gyrate wildly this week as traders weighed the sudden loss of processing capacity against limited animal supplies. Texas Agriculture Commissioner Sid Miller said ranchers are receiving $300 to $500 less per head for their cattle.

The situation presents a unique policy collision in Washington. The Trump administration has actively sought to lower historically high consumer beef prices by expanding access to imported meat and enacting other supply-side measures. However, the abrupt reduction in domestic processing capacity—triggered by the administration’s own immigration enforcement push—directly undercuts those efforts.

As the backlog grows, market-ready animals are getting heavier at feedlots, piling up feed costs and creating animal welfare concerns. Industry groups warn that if the Kansas bottleneck persists, fewer cattle moving through packing plants will mean less beef on supermarket shelves—and higher prices at the meat counter.

Place Your Order

Don't Miss

The SEC Is Making Deutsche’s CEO Personally Responsible For Bank’s Crimes

By StevieRay Hansen

Since launching its last major international expansion push in the late 1990s, Deutsche Bank has become knonw – particularly over the last ten years –…

“Digital Euro” as It Begins Experiments on Digital Currency Launch — the Banking Industry Is Very Concerned Digital Currency Will Kill the Banking Industry

By StevieRay Hansen

As the world obsesses over Trump’s taxes or whether or not he is using oxygen during his covid hospitalization, the biggest overhaul in monetary and…

Financialization & The Road To Zero, Part 1: The Evolution Of Commerce

By StevieRay Hansen

This is Part 1 of a 4-part series. fi·nan·cial·i·za·tion /fəˌnanCHələˈzāSHən, fīˌnanCHələˈzāSHən/ noun The process by which financial institutions, markets et cetera increase in size and…

Former Deutsche Bank Traders Convicted Of Fraud For Spoofing Precious Metals Between 2008 And 2013

By StevieRay Hansen

Former Deutsche Bank AG traders Cedric Chanu and James Vorley were convicted for manipulating gold and silver prices on Friday after three days of deliberation…

“An Extremely Dangerous Game” – Central Bankers ‘Extend & Pretend’ Has Increased Risk Of “Catastrophic Collapse”

By StevieRay Hansen

In recent weeks, there has been a lot of talk about the role of the world’s central bankers going forward. With that in mind, now seems like…

Posted in

Stevie Ray

Leave a Reply

Your email address will not be published. Required fields are marked *