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Feedyards, Packers Disrupted by Weather and Energy Shortage

A winter storm and the coldest temperatures in decades has created another crisis for cattle feeders and beef packers. Rolling power outages and natural gas shortages at many High Plains feedyards has hampered efforts to keep cattle fed during these brutal conditions. The deep freeze this week in Texas, which relies on electricity to heat many homes, is causing power demand to skyrocket. At the same time, natural gas, coal, wind and nuclear facilities in Texas have been knocked offline by the record-low temperatures.

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Strong demand for poultry products is being aided by the continuous rise in beef prices as consumers substitute proteins. Challenges to production exist, though, particularly the reoccurring outbreaks of avian influenza. Can the sector collectively meet this high demand?