Tyson Foods announced plans Thursday to close an Illinois beef plant and a Utah packaging facility while seeking a buyer for a Washington plant, restructuring its operations amid a historic U.S. cattle shortage that has driven up consumer prices.
The meatpacking giant is shrinking its footprint to navigate what executives describe as a severe supply crunch. The Arkansas-based company will shutter its Joslin, Illinois, plant, which employs more than 2,000 workers and processes roughly 3,000 cattle daily. Operations will also cease at a large case-ready beef-packaging facility in Utah, while a plant in Pasco, Washington, capable of slaughtering about 2,000 cattle a day, has been put up for sale.
Centralizing Operations Amid Historic Cattle Deficits
To weather the ongoing inventory contraction, Tyson is redirecting its focus toward three facilities located in the central United States: Dakota City, Nebraska; Holcomb, Kansas; and Amarillo, Texas. Company officials explained that these locations form a more competitive footprint designed to handle persistent livestock shortages.
Industry pressure has mounted as prolonged drought conditions across major ranching regions diminish available forage areas, forcing ranchers to liquidate cattle. Compounding the issue, recent USDA cattle inventory data reveals continued limited heifer retention. This metric signals that supply constraints are likely to persist.
Financial Strain and Plant-Level Impact
The downsizing reflects headwinds within the company’s beef business. During a recent earnings call, CEO Donnie King acknowledged the underperformance, stating plainly that Beef hasn’t performed the way we expected, and we’re not pretending otherwise.
Capacity Shifts and Next Steps for Employees
Tyson plans to absorb production capacity from the shuttered plants into other existing locations that possess what the company describes as ample capacity to grow.
As cattle availability fluctuates, the company also intends to ramp up a second shift at its Amarillo, Texas, facility.
The company maintains that employees will receive transitional support. Tyson stated that it is committed to helping team members apply for open roles across its broader manufacturing network as the consolidation takes shape.
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