Tyson Foods announces multiple US plant closures amid cattle shortage

Tyson Foods, the largest meatpacking company in the United States, has announced the closure of several facilities, including plants in Iowa, Utah, and a facility in Joslin, Illinois. These closures are expected to result in significant job losses, with one announcement impacting 2,700 workers on short notice.

The company is responding to a historic shortage of cattle, which has reached a 75-year low due to multi-year droughts and rising economic pressures. Tyson reported a 15.9% decrease in beef volume and an operating loss of $138 million in its third quarter. While beef prices have risen due to the shortage, agricultural economists suggest these specific plant closures may not significantly impact consumer grocery costs, as the nation maintains sufficient processing capacity to reroute the current supply.

Industry experts note that the closures represent an attempt to 'right size' operations in relation to current animal inventories. Some facilities, such as the Joslin plant, were also noted for being older and potentially less efficient.