What you’ll learn
- How cattle move through the beef supply chain
- Why the beef supply is slow to rebuild
- What Cargill does as a processor and supplier
- How investments in people, safety and efficiency support a reliable protein supply
Understanding the economics of beef
Long before beef reaches the store, many things shape how much is available. Weather and drought decide how much grass and feed ranchers have. Feed, labor, fuel and transportation all play a role along the way. And because cattle take years to raise, changes can take years to work through the system. Cargill is one part of this system, connecting ranchers to the stores and restaurants that sell or serve beef.
How does beef get from the ranch to your table?
The beef supply chain begins with ranchers, who raise and care for calves on pasture and rangeland. As cattle mature, many move to producers, who manage feedyards where cattle are fed balanced diets and grow to consistent weight and quality. Cattle then move to processors, where they are harvested and prepared into beef products. Those products are purchased by customers such as retailers, restaurants, foodservice companies and manufacturers, and ultimately enjoyed by consumers.
Every stage of the beef value chain requires time, labor, resources and investment. Learn more about the cattle cycle and how beef processing works.
Cargill’s role
Cargill buys finished cattle, processes beef in USDA-inspected facilities and supplies retailers, restaurants, foodservice companies and manufacturers, helping move food safely, responsibly and efficiently.
Who raises America’s beef cattle?
Most U.S. beef cattle are raised on family ranches. Cargill works directly with these ranchers, buying finished cattle and connecting them to national markets.
Our scale
Cargill beef by the numbers
60 million
Americans fed on average each day
22,000
Cargill beef employees in the U.S.
22
Processing and distribution centers
99.9%
Of every animal used
An inside look at the beef industry
- What is the cattle cycle?
- What led to today’s tight cattle supply?
- Why does U.S. cattle supply take years to rebuild?
The cattle cycle
Jarrod Gillig, senior vice president of Cargill Beef North America and a cattle rancher, shares his perspective on the cattle cycle and why U.S. beef supply is so tight today.
Beef supply chain questions, answered
Quick answers on how the beef supply chain works, what affects beef availability and cost and the role Cargill plays as a beef processor.
Why is beef supply tight right now?
U.S. cattle supply is tight mainly because of the cattle cycle. Drought and high costs in recent years led many ranchers to reduce their herds, and because it takes roughly two years to raise a calf to market, rebuilding the herd takes years. The U.S. cattle herd has been at historically low levels as a result.
How does beef get from a ranch to a store?
Cattle are raised on ranches, then moved to feedyards where they reach consistent weight and quality over several months. Cargill and other processors buy finished cattle, process them in USDA-inspected facilities and supply retailers, restaurants and foodservice companies.
What does a beef processor do?
Processors buy finished cattle from ranchers and feedyards, then process them into cuts that can be sold through retail, foodservice and manufacturing channels. Each animal becomes many cuts from 11 primals, and byproducts like tallow, hides and bone meal add further value. Cargill processes beef in USDA-inspected facilities and distributes it across the U.S.
What is the cattle cycle?
The cattle cycle is the multi-year biological process of raising beef cattle. It takes roughly two years from a ranching decision to a finished animal, which means cattle supply responds slowly to market conditions. When ranchers reduce their herds due to drought or high costs, the effects on supply can take years to work through the system.
What investments has Cargill made in beef?
Cargill invests in its facilities, workforce and communities. Recent investments include $40 million in employee housing in Fort Morgan, Colorado; a $5 million childcare center in Dodge City, Kansas; $32 million in road and traffic improvements in Friona, Texas; and $1.31 billion in annual wages across rural America. We have also deployed CarVe, a computer vision system that improves cutting precision, reduces waste and supports worker training.
What affects beef availability and cost?
Beef availability and cost are shaped by cattle supply, production timelines, weather, feed and input costs, labor, transportation, processing, customer channels and consumer demand. Because cattle take years to raise, these factors move through the system over time.
How do market factors reach consumers?
Market conditions can affect each part of the beef value chain differently. Cattle availability, input costs, transportation, labor, processing, customer channels and consumer demand all influence how beef moves from ranches and feedyards to stores, restaurants and homes.
Who raises the cattle Cargill processes?
Most U.S. beef cattle are raised on family ranches. According to the 2022 U.S. Census of Agriculture, there are more than 534,000 ranches across the U.S., 90% are family or individually operated and the average herd is 47 head. Cargill buys finished cattle from these ranchers and from feedyards, then connects them to national markets.
Dig into the beef system
The cattle cycle
Why beef supply takes years to rebuild, and what that means for the beef system today.
Beef processing
What happens between the feedyard and the store, and what Cargill does as a beef processor.
Innovation in beef
How CarVe and other technology help reduce waste and improve precision in beef processing.
People & communities
The 22,000 employees and rural communities that keep beef moving across the U.S.