09/14/06 Feed lots changes to come?

Cevin Jones has been putting the pencil to paper and he's not alone. Jones and other southern Idaho feed lot operators know that their expenses are going up beginning next month when Tyson Foods closes its beef packing plant near Boise. JONES "We all know what fuel prices are. I've got choices. I can go to Hyrum, Utah now or up to Washington, Pasco or Toppenish and that's going to be the freight bill." From his feed lot at Eden Jones often shipped animals to Boise. JONES "It's going to be about three times the freight to go to Washington. For us here going to Hyrum is going to be about 130 percent of what Boise was." Idaho has more cattle on feed than Washington but will be left with no packing plants, thanks to the Tyson shutdown and a prior Armour closure. Jones says it's not the end of the world; long transits are common in the Midwest but& JONES "It certainly changes how we used to do business when we're talking less than a dollar freight and now we're going to be talking in the neighborhood of three dollars freight. That will change what we can bid for our cattle coming in." Idaho had an advantage over many states because of lower production costs but Jones and others now see that being offset by their higher freight bills. Obviously they look to the day when some company will come back to Idaho with a packing plant. Today's Idaho Ag News Bill Scott