Center for Agriculture and the Economy
Leveraging expertise from the Kansas City Fed, the Center provides timely analysis of industry developments and conducts ongoing research on the agricultural economy.
The Number of Cattle Processed into Beef Has Declined Alongside Low Inventories and Reduced Slaughter Capacity
March 5, 2026
By Cortney Cowley
U.S. beef cattle slaughter has continued to deviate from the pre-pandemic baseline in early 2026. During 2020 and 2021, shocks associated with COVID-19, severe weather, and a cyberattack at JBS contributed to substantial disruptions in the beef supply chain. Similarly, in November 2025, the total number of cattle slaughtered in the U.S. was 22% lower than in January 2020. However, more recent deviations in cattle slaughter have not resulted from shocks in the supply chain but from historically low cattle inventories. As cattle inventories have declined, higher procurement costs and lower capacity utilization have created challenges in the beef packing industry and contributed to reduced hours for workers and closures at three beef packing plants in early 2026. Moving forward, reduced slaughter capacity will likely boost efficiency in the supply chain but keep beef production at lower levels.
Note: Calculations based on the total number of cattle, greater than or equal to 500 pounds, that are slaughtered in commercial meat packing facilities in the United States.
Sources: U.S. Department of Agriculture (USDA) and Federal Reserve Bank of Kansas City staff calculations
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Through regular surveys, analysis and connections across the industry, the Kansas City Fed has had a longstanding focus on U.S. and global agriculture. Leveraging this expertise, the Center for Agriculture and the Economy serves as a resource within the Federal Reserve System by providing timely analysis of industry developments and conducting ongoing research on the agricultural economy. The Kansas City Fed is committed to understanding developments in the agricultural economy and gathering perspectives from rural America in order to include them in discussions on the national economy.
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Agriculture is central to the Kansas City Fed’s 10th District’s economy, from farm production and food manufacturing to agricultural banking and finance. Through its regular surveys, analysis and connections across the industry, the Kansas City Fed has had a longstanding focus on the U.S. and global agricultural economy. At the same time, connecting with stakeholders and ag industry professionals through events, round tables and conversations is critical to the Bank’s work.