Tyson Foods Closes Two Beef Plants Amid Cattle Crisis

Tyson Foods has announced the closure of its beef plant in Joslin, Illinois, and its case-ready facility in Eagle Mountain, Utah, while also seeking a buyer for its beef plant in Pasco, Washington. This decision follows a $138 million operating loss in Tyson’s beef unit, attributed to a national cattle shortage, rising operational costs, and declining retail meat demand due to inflation.

The closure in Illinois is expected to lead to approximately 2,500 job losses, while over 7,000 employees will be affected in Utah. The closures are indicative of broader industry challenges stemming from multi-decade low US cattle inventories, exacerbated by drought, high feed costs, and economic pressures on ranchers.

Competitors like JBS have also faced significant losses and facility shutdowns. To maintain processing capacity, Tyson plans to consolidate operations across its facilities in Amarillo, Texas; Holcomb, Kansas; and Dakota City, Nebraska, reinstating a second shift in Amarillo to improve efficiency.