Tyson Foods to Close Two Beef Plants Amid U.S. Cattle Shortage
On Thursday, Tyson Foods revealed plans to close two beef processing plants and sell a third in response to a shortage of cattle in the U.S. The company will cease operations at its facility in Joslin, Illinois, and its case-ready plant in Eagle Mountain, Utah, while looking for a buyer for its Pasco, Washington location. This streamlining will concentrate efforts in Dakota City, Nebraska; Holcomb, Kansas; and Amarillo, Texas, where a second shift will be introduced as cattle availability permits. The Joslin facility, which processes around 3,000 cattle daily, employs over 2,000 workers. Tyson's beef division is now expected to incur losses between $500 million and $650 million for fiscal 2026, an increase from previous forecasts.
Key facts
- Tyson Foods announced closures of beef plants in Joslin, Illinois, and Eagle Mountain, Utah, and the sale of its Pasco, Washington, plant.
- The consolidation will focus on three facilities: Dakota City, Nebraska; Holcomb, Kansas; and Amarillo, Texas.
- The Joslin plant employs over 2,000 people and processes about 3,000 cattle per day.
- The Pasco facility can slaughter about 2,000 cattle per day.
- Tyson closed its Lexington, Nebraska, beef plant earlier this year, which employed roughly 3,200 workers with a daily capacity near 5,000 head.
- The U.S. cattle herd has shrunk to a 75-year low, contributing to higher input costs and record retail beef prices.
- Tyson lowered its fiscal 2026 profit forecast, projecting a beef segment adjusted operating loss of $500 million to $650 million.
- In its most recent quarter, Tyson's beef segment posted an adjusted operating loss of $142 million, with sales volumes down nearly 16%.
- JBS, Tyson's largest rival, reported an adjusted North American beef loss of $138 million in the quarter through June 30.
Entities
Institutions
- Tyson Foods
- JBS
- U.S. Department of Agriculture
- The Wall Street Journal
- Reuters
Locations
- Joslin, Illinois
- Eagle Mountain, Utah
- Pasco, Washington
- Dakota City, Nebraska
- Holcomb, Kansas
- Amarillo, Texas
- Lexington, Nebraska
- United States
Sources
- Quartz —