National Beef Says Worst Is Over for US Cattle Cycle

Meatpacker National Beef Inc. said it is seeing a bottom in the US cattle industry’s downturn as it reported its highest margin in two years.

“We do believe we are through the worst part of the cycle,” National Beef’s Chief Executive Officer Tim Klein told journalists on Thursday. A reduction in overall slaughter in the US aided beef plant margins, while strong consumer demand kept beef prices elevated, he said.

The Missouri-based beef producer controlled by Brazilian group MBRF Global Foods SA reported a margin of 2.1% considering earnings before items such as interest and taxes. That’s the highest since the third quarter of 2024.

Cattle prices have surged as the US herd shrank to its smallest in decades due to droughts and high operating costs, tightening meatpackers’ margins. Recent earnings, however, have signaled at least some relief for the industry, with JBS NV on Monday also reporting improving results in its US beef unit.

Beef supplies have become a key concern for the Trump administration, as prices for the protein remain an outsize driver of food inflation. It has encouraged more foreign ground beef imports and resumed live cattle shipments from Mexico, both moves that have helped meatpackers.

MBRF’s results benefited from growing sales in the US and higher poultry exports even as Brazil faces restrictions in trade with Europe. A resumption in shipments is expected soon. Meanwhile, a recent outbreak of Newcastle disease hasn’t significantly affected poultry exports out of Brazil, the group’s CEO Miguel Gularte said.