by Kim Souza (ksouza@talkbusiness.net)
Lower beef packer margins for Tyson Foods and other processors will continue as the U.S. beef cattle herd rebuilds, according to Derrell Peel, livestock marketing analyst at Oklahoma State University Extension.
Packers like Springdale-based Tyson Foods lost about $10 per head on the beef they processed for the week ending June 3. The loss per head widened from $5 per head the prior week. Packers profited about $87 per head a month ago and $265 per head a year ago, according to Sterling Beef Profit Tracker.
Packer margins are being squeezed by higher live cattle prices driven by fewer cattle supplies which has pushed processing capacity utilization down to 79% in recent weeks.
