Packers Could ‘Drag Their Feet’ on Running at Full Capacity

Market analysts are closely watching how the meat packing companies handle reopening. Because of the current margins, there may not be much incentive for the packer to run at full capacity. “Following the boxed beef numbers closely, I think there’s still going to be an increase in these meat prices at the retail level,” says Darin Fessler, market analyst, Lakefront Futures. “You look at numerous grocery stores across the country and they are limiting meat purchases. I don’t think that will stop until we get more plants back online.” Fessler expects the packers to drag their feet at returning to full capacity. “The demand is still there, but if you shove more meat on the market, you’ll lower beef prices. I don’t think that’s what they want to do right now. I think they’re obviously worried about employee safety, but they are enjoying the margins right now.”