Dive Brief:
- Cargill says it will close its slaughterhouse in Milwaukee on Aug. 1. Some 600 jobs will be lost as a result of the decision.
- The agricultural-processing and trading giant said a reduction in the size of the U.S. cattle herd prompted the move. The USDA said recently that the number of cattle in America had reached its lowest point since at least 1973.
- Cargill, the largest privately held company in America, said it will continue to operate its ground-meat production facility, located on the same site in Milwaukee, as the slaughterhouse.
Dive Insight:
It's hard to see any good news in Cargill's decision. Those 600 jobs won't be easily replaced in that market. However, every cloud does have a silver lining, and the continuing drop in cattle supply is no exception. Fewer cattle means higher prices and a continuing boom for ranchers. And similar dynamics are at play in poultry and pork.