Tyson Foods to Close Two Beef Plants and Seek Sale of a Third Amid Cattle Shortage
Tyson Foods will shut down facilities in Illinois and Utah and look to sell its Washington plant as it consolidates operations in response to ongoing cattle supply constraints.
Tyson Foods announced Thursday that it will close its beef processing plant in Joslin, Illinois, and its case-ready facility in Eagle Mountain, Utah, while pursuing a sale of the Pasco, Washington, beef plant. The company said the moves are part of "strategic changes" to its beef business and will allow it to focus on three central-U.S. locations – Dakota City, Nebraska; Holcomb, Kansas; and Amarillo, Texas – which it describes as a more competitive footprint.
Tyson cited recent USDA data showing limited heifer retention as evidence that cattle supply constraints are likely to continue. It said capacity from the closed plants will be shifted to other sites that have "ample capacity to grow," and that a second shift will be added at the Amarillo plant as more cattle become available.
"The company is committed to supporting our team members through this transition, including helping them apply for open positions at other facilities," Tyson said in a news release.
The restructuring comes as U.S. cattle inventories remain low due to drought-related reductions in forage, contributing to higher beef prices for consumers. Tyson noted that the changes aim to maintain a similar level of cattle harvesting across a more efficient network.