As consumers today become more sophisticated with their foods – particularly those high in protein – suppliers are having a hard time keeping up with consumer needs.
From a piece of jerky to the right vegetables, the supply chain is very busy providing those needs.
People have learned they can simply take an injection and lose weight, but to maintain the weight they want, they need to eat the right foods, which don’t always show up in retail markets.
Meg Becker, who writes for Meatingplace, said, “For years, many suppliers relied on strong relationships and proven performance to drive growth. Those factors still matter, but they’re no longer enough on their own. Today’s retail and foodservice partners often begin evaluating suppliers before they even speak with a sales team member. By the time a conversation happens, they’ve already formed opinions based on what they can find online and how clearly a company communicates its value.”
Becker goes on to say, “Many protein companies have invested heavily in operational excellence but are still telling a story built around factors that mattered five or 10 years ago, such as company history, legacy and broad statements about quality. The reality is today’s customers are evaluating suppliers through a different lens.”
When it comes to retail and foodservice companies, consumers want to know where food products come from and other factors, such as how the supply chain will be maintained during times of disruption and if quality will stay strong.
Today’s consumers want to be confident in what they are choosing at the grocery store, and when it comes to the protein industry, consumer confidence has become a competitive advantage.
In the protein marketplace, nothing is bigger than meat, and consumers have picked beef as their go-to. The issue for beef-loving consumers and those who feed and process beef is the record-low number of cattle in the U.S.
For consumers, this results in record-high prices for beef, while feeders and processors have more capacity than they currently fill. Some feedlots are closing and large meatpackers are closing some of their packinghouses.
According to CattleFax, the average weekly fed cattle harvest in 2022 was roughly 510,000 head. Comparatively, in 2026, only 440,000 head of fed cattle are processed on average each week. This may go even lower, as some say there is still an overcapacity in beef packinghouses.
Tyson Foods’ move to close two packinghouses and sell another could affect cattle prices.
As available cattle supplies match up with the packinghouse capacity, it could hurt feeders and fed cattle values, which packers are looking forward to.
Locations where packinghouses are being closed may hurt the Northern Region more, but time will tell.
Tyson will keep plants in Dakota City, Neb.; Holcomb, Kan. and Amarillo, Texas open, while plants in Joslin, Ill. and Eagle Mountain, Utah will close. They are also considering selling the Pasco, Wash. packinghouse.
I feel for all of the workers where they shut down the plants and communities surrounding these plants, as they will likely face hard times.
On a positive note, the 1,700 workers at Cargill’s Fort Morgan, Colo. beef packinghouse are returning to work after agreeing to a new five-year labor agreement, ending a three-month dispute.
Dennis Sun is the publisher of the Wyoming Livestock Roundup, a weekly agriculture newspaper available online or in print.
