US cattle industry is struggling as herd shrinks

The abrupt closure of Cargill Inc's beef processing plant in Plainview, Texas, this month could signal consolidation in the beef packing industry due to the cattle herd shrinking to the smallest in over 60 years, an industry leader said on Thursday.

"We are probably going to see some consolidation, economics will dictate that," said Scott George, incoming president of the National Cattlemen's Beef Association, told Reuters in an interview at the organization's annual gathering.