Key facts
- Tyson Foods will close or sell three U.S. beef facilities: Joslin, Illinois; Eagle Mountain, Utah; and Pasco, Washington.
- The company is consolidating its beef operations around plants in Dakota City, Nebraska; Holcomb, Kansas; and Amarillo, Texas.
- The closures are a response to a significant and historic cattle shortage impacting the U.S. meat industry.
- Tyson Foods has experienced financial struggles, with shares losing nearly 30% of their value over the last five years.
- The company previously restructured operations at its Lexington, Nebraska, and Amarillo, Texas, beef plants.
Tyson Foods announced it will close or sell three of its U.S. beef facilities, including operations in Joslin, Illinois, Eagle Mountain, Utah, and Pasco, Washington. The move is a direct response to a severe, historic cattle shortage that has led to significant financial losses for the company and the broader U.S. meatpacking sector.
The company plans to consolidate its beef business around its more efficient plants located in Dakota City, Nebraska; Holcomb, Kansas; and Amarillo, Texas. This restructuring follows previous reductions in capacity, including the shutdown of its large beef plant in Lexington, Nebraska, and a shift to a single shift at its Amarillo facility.
U.S. meatpackers have been struggling as rising cattle costs outpace the gains from high prices for beef products. The cattle supply has dwindled to a 75-year low, exacerbated by drought conditions and import restrictions aimed at preventing the spread of the New World screwworm pest. Despite the ban on imports from Mexico being considered for lifting, it may take up to a year for imported cattle to be ready for slaughter.
Texas Agriculture Commissioner Sid Miller stated that the consequences of the cattle shortage are rippling through the entire beef supply chain. However, independent livestock trader Dan Norcini suggested that the closures might not significantly affect national livestock prices due to the locations of the affected plants not being concentrated cattle-raising areas.
Tyson Foods has warned that losses in its beef division are expected to widen, forecasting an adjusted operating loss of $500 million to $650 million for fiscal year 2026, an increase from previous projections. The average retail price for ground beef reached a record high of $8.65 per pound in June.