Tyson Foods closes beef plants amid historic U.S. cattle shortage

Tyson Foods is scaling back its beef processing operations, announcing the closure of its beef harvest facility in Joslin, Illinois, and its packaging site in Eagle Mountain, Utah. The company is also seeking to sell its plant in Pasco, Washington, following the previous permanent closure of a large slaughterhouse in Lexington, Nebraska.

These closures are driven by a severe cattle supply shortage in the United States, with nationwide herd inventories reaching their lowest levels in approximately 75 years. The deficit is attributed to prolonged drought conditions in ranching states, rising costs for feed and hay, and livestock import restrictions.

As a result of the scarcity, Tyson Foods anticipates an operating loss of between $500 million and $650 million in its beef segment for 2026. To maintain efficiency, the company plans to concentrate its processing capacity around facilities in Dakota City, Nebraska, Holcomb, Kansas, and Amarillo, Texas.