Tyson Foods announced it will close or sell three of its beef plant and packaging operation sites in the US. The company will end operations at its beef facility in Joslin, Illinois, and its case-ready beef facility in Eagle Mountain, Utah, and pursue the sale of its beef plant in Pasco, Washington.

Industry Struggles

The closures mark the latest signal of trouble for the nation’s meat processing sector, currently dealing with a 75-year trough in supply. US meatpackers have been steadily losing money in their beef businesses because rising cattle costs have outpaced gains from soaring prices for steaks and hamburger meat.

Tyson said it will move the processing capacity from these locations to other sites, and anchor its beef business around its plants in Dakota City, Nebraska; Holcomb, Kansas; and Amarillo, Texas. The company declined to say how many workers will be affected by the closures or how many cattle these plants process.

Consequences

The plant closures could affect cattle prices regionally, because there will be fewer people bidding for animals. However, on a national level, it is unlikely to make a significant difference on livestock prices, as the locations being closed are not where there is a high concentration of cattle.

Tyson warned that losses in its beef business would widen as tight cattle supplies keep livestock costs elevated. The company forecast an adjusted operating loss of $500 million to $650 million in fiscal 2026 for its beef business.

Cattle supplies shrank to a 75-year low after a prolonged drought burned up grazing lands in the western US and Washington suspended imports from Mexico. The Trump administration plans to start lifting the import ban this month, which may take up to a year for Tyson to benefit from.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.