There is growing interest in producing more beef from cattle raised in pasture-based systems, rather than grain-finishing feedlot systems in the USA. Given the availability of high-quality forage, pastureland, and markets in the northeastern USA, an expansion of beef production in the region contributes to a gradual shift toward grass-based finishing systems. However, the existing capacity of slaughter and processing facilities in the region is not sufficient to meet the service demand as grass-finished beef cattle production expands. This article examines slaughter and processing bottleneck problems under three scenarios of grass-finished beef production expansion. Through modeling the optimal utilization and expansion of currently existing plant capacity in the region, this study identifies capacity expansion solutions to overcome the emerging bottleneck problems. The plant utilization and expansion problem is formulated as an optimization model with the objective of minimizing total costs associated with cattle assembly, slaughter, processing, and distribution. Our results suggest that slaughter bottlenecks in New York State coincide with underutilized slaughter capacity in New England. Reducing plant numbers while increasing plant utilization rates or expanding the capacity of the remaining plants, would likely lead to greater cost savings.