Beef producers around the United States, including those close to home here in the Midway District, have been affected by the recent fire at a Tyson Fresh Meats facility near Holcomb. The fire broke out Friday August 9 and destroyed most of the facility.

According to CattleFax, the Holcomb plant represented 6 percent of the total fed-cattle packing capacity in the United States, and 23.5 percent of the total fed-cattle packing capacity within the state of Kansas.

This plant is one of six that Tyson operates in Kansas, and employs 3,800 workers in multiple shifts. Tyson has announced plans to rebuild the Holcomb plant, but to this point a timeline has not been established.

Live and Feeder Cattle markets were especially “bearish” with futures contracts experiencing “limit-down” price fluctuations for consecutive days following the fire. Cash trade markets have also been deeply impacted.

To help the supply chain and market recover, Tyson has implemented emergency measures to shift cattle to other processing locations in Kansas and other states like Texas and Nebraska.

In other news, producers will see a change in the animal health sector of the beef industry. The company Elanco has agreed to purchase Bayer Animal Health for $7.6 billion following a cash and stock purchase agreement. Pending regulatory approval this agreement would make Elanco the second largest maker of medicines for pets and livestock.

The two companies said Bayer would receive $5.3 billion in cash and $2.3 billion worth of Elanco stock based on a price of $33.60 per share, the 30-day average price as of Aug. 6.

Information: Midway District Livestock Extension Agent Clint Laflin, cllaflin@ksu.edu or (785) 483-3157.