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Cargill to close Texas feedlot

Cargill says it will close its cattle feedlot in Texas next summer. A Cattle Network story says it’s the second Cargill-owned property in Texas to shut down recently. The company announced in January it’s idling its Plainview, Texas processing plant. Years of drought and cattle herds moving further north have resulted in shrinking head counts and rising feed costs over the last couple of years.

Cattle producers deciding to hold on to heifers to rebuild herds will likely result in fewer placements and lower slaughter rates in the months ahead.

Cargill communications director Michael Martin expects that with rain this summer easing the drought, herds will start recovering. Still, supplies aren’t expected to return to normal until at least 2016. Numbers are also set back by the recent South Dakota blizzard.

The feedlot employs about 45 people and has a capacity of 62,000 head. Martin says the company will work to move its employees to other jobs within the company.