- TSN +1.82% LC=F -0.66%
Tyson Foods (TSN) is closing a beef production plant in Nebraska and paring operations at another as the outlook for the industry remains challenged amid tighter cattle supply and soaring prices.
The meat-processing giant announced on Friday plans to close one beef facility in Lexington, Neb., and will also lower production at its beef plant in Amarillo, Texas. To meet demand, it plans to increase volumes at its other beef facilities.
The company said earlier this month it expects losses in its beef business to be up to $600 million for its current fiscal year. The decision may impact up to 5,000 workers across the two facilities.
"The company is committed to supporting our team members through this transition, including helping them apply for open positions at other facilities and providing relocation benefits," the company said.
NYSE - Delayed Quote • USD (TSN) Follow View Quote Details 53.67 +0.96 +(1.82%) At close: November 21 at 4:00:02 PM EST TSN PPC ^GSPC Advanced ChartThis decision comes after President Trump announced plans to cut tariffs on more than 200 foods, including beef, bananas, coffee, and orange juice, last Friday.
Read more: The latest news and updates on Trump's tariffs
Earlier this month, the administration also launched an investigation into the nation’s largest meatpacking companies, alleging these companies were "artificially inflating prices at the expense of farmers, ranchers, and working families."
In its latest quarter, Tyson reported beef prices jumped 17% as volumes fell 8.4%. For its fiscal year ended Sept. 27, Tyson reported a $426 million loss for its beef business.
The company warned that it planned to decrease roughly 2% of its domestic production in 2026.
"Cattle supplies are at record lows due to drought, potential herd rebuilding, and the impact of New World screwworm in Mexico," CEO Donnie King told investors on the company's latest earnings call. "These factors created market headwinds during the quarter."
This comes a little over two years after the company closed four chicken processing plants.
A shopper looks at a meat display November 4, 2025 at the Market 32 Supermarket in South Burlington, Vermont. (Photo by Robert Nickelsberg/Getty Images) · Robert Nickelsberg via Getty Images Brooke DiPalma is a reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at [email protected].
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