Tyson Foods is closing or selling three of its beef facilities as a prolonged shortage of cattle continues to impact the industry. The company announced it will cease operations at its beef plant in Joslin, Illinois, and its case-ready beef facility in Eagle Mountain, Utah. Additionally, Tyson is putting its beef plant in Pasco, Washington, up for sale.
These closures will reduce Tyson's beef-processing capacity as the company grapples with escalating cattle costs and significant financial losses. Tyson stated that it intends to shift production to its remaining facilities, aiming to maintain a similar overall cattle slaughter volume despite operating fewer plants.
The US cattle herd has diminished to its lowest level in decades, creating a supply deficit that has driven up the cost of cattle for meat processors. These increased costs are subsequently being passed along the supply chain.
Tyson Foods has cautioned that its beef division could report an adjusted operating loss between $500 million and $650 million in fiscal year 2026. Concurrently, average retail beef prices have reached record highs. According to USDA data, the forecast for slaughter-steer prices in 2026 is approximately $251.10 per hundredweight, an increase from previous projections.
The average retail price for lean and extra-lean ground beef reached $8.65 per pound in June, according to federal statistics. Consumer concerns about rising prices have been evident online, with some shoppers reporting instances of ground beef selling for $12 per pound and noting that prices for everyday cuts now resemble those for premium steaks in prior years.
Factors Contributing to the Shortage
The cattle shortage has been developing over several years, exacerbated by drought conditions across parts of the western United States, which have degraded grazing land and increased the expense for ranchers to sustain their herds. Many ranchers have been hesitant to rebuild herd numbers due to challenging economic conditions and adverse weather patterns experienced in recent years.
An additional complication is the potential spread of the New World screwworm, a parasite that has been advancing northward through Central America. Concerns over this pest led the U.S. to temporarily suspend cattle imports from Mexico, further limiting an important source of livestock.
Tyson's recent actions follow the closure of its large beef plant in Lexington, Nebraska, earlier this year, which employed approximately 3,200 people and was capable of processing thousands of cattle daily. The company also consolidated production at its Amarillo, Texas, facility, impacting around 1,700 workers. Tyson plans to focus its beef operations on three primary U.S. facilities: Dakota City, Nebraska; Holcomb, Kansas; and Amarillo, Texas.
Impact on Workers and Communities
Tyson indicated it would assist affected employees in Illinois, Utah, and Washington with applications for positions at other company facilities. The closure in Joslin alone is expected to result in the loss of approximately 2,500 union jobs, according to Illinois officials. Local reports suggest around 700 jobs will be affected by the Eagle Mountain closure. These workforce reductions are anticipated to have a significant impact on the local communities surrounding the affected plants, particularly in areas where these industrial employers are major job providers.
Consumers have expressed frustration over the disparity between reported industry struggles and the record-high prices for beef, questioning how the market can be considered in crisis when retail costs are so elevated.