March 7, 2005

Cargill says cutting production further at US beef plants

Cargill Meat Solutions announced Friday that it is making additional cuts in production at seven of its US beef plants, citing poor market conditions.

Bill Rupp, president of Cargill's beef operations, in the release said, "While we have been operating in reduced mode for some time, current market conditions and lacklustre seasonal beef demand are forcing us to further reduce the number of cattle we process weekly."

The company's beef plants are located in Plainview and Friona, Texas; Dodge City, Kansas; Schuyler, Nebraska; Ft. Morgan, Colorado; Milwaukee, Wisconsin; and Wyalusing, Pennsylvania.

Rupp said the tight supply of market-ready cattle and the continued closure of the US border to Canadian cattle are making market conditions difficult.

Cargill is the second largest beef processor in the US.