There hasn’t been a bargain at the beef counter for a long, long time. Many Nebraskans rely on the beef market for their income and when supplies are tight connected businesses suffer. Just last week Tyson Foods closed their processing plant in Denison, Iowa because there just wasn’t enough cattle available to keep them running and 400 people lost their job.
Creighton University Economist Ernie Goss says there is a domino effect when there are layoffs. He says for every one manufacturing job lost you lose a spill-over job, in retail for example. He says Tyson Foods is encouraging workers to apply at their other locations, including Dakota City and Lexington. Goss says that is a long way from home and is not a viable offer for those now unemployed.
Goss says it is hard to predict where this market will go. He says, “A lot will depend on the turnaround in the global economy. Nebraska and Iowa together export between $12 and $13-billion worth of food so this is significant. It depends on what happens in the global economy and I expect that to do a little bit better but in the short to intermediate term it is going to be a bit tougher.”