“This was a very hard decision because it affects the lives of our people, their families and a community that has supported this plant for more than 50 years”, Stouffer said. He said ending beef operations at the plant will put Tyson’s remaining beef business in a better position to succeed. “What we’re focusing on is how we’re going to take care of their employees”. Tyson acquired the plant when it purchased IBP in 2001.
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Bonner said it’s sad to see the plant close because it has a long history in Denison.
“The cattle supply is tight and there’s an excess of beef production capacity in the region”, he said.
Last year, the U.S. cattle herd sank to its lowest level since 1951 at roughly 89 million head based on the government’s January 1 inventory report.
This means the feedlots have fewer cattle to sell to meatpackers, including Tyson.
Tyson wouldn’t pay what it viewed as over-inflated prices for cattle.
Quality Food Processors said Monday it already employs 100 workers and plans to expand, depending on financing and economic development incentives.
“It becomes a battle between feedlots and the packers”, Troxel said. Akorn, Inc. (AKRX) reported that, as predictable, it has attain a notice from the NASDAQ Staff stating that the Firm is not in compliance with NASDAQ Listing Rule 5250(c)(1) because the firm has not yet filed its Form 10-Q for the quarter ended June 30, 2015, which was due on August 10, 2015. Fed cattle supplies are expected to remain tight until sometime later next year and margins won’t recover until cattle numbers rise. Ranchers are now starting to rebuild their herds, but that is a multiyear process.
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“They can turn and adjust to market conditions quicker just because of the biology of the animal”, Justice said. This is an important indicator as a higher ratio typically suggests that investors are expecting higher future earnings growth compared to companies in the same industry with lower price to earnings ratios. “They’ve been kind of forced to scale back”.
