Tyson Foods To Close Us Beef Plant After Year Of Losses

Credit: T. Schneider/Shutterstock.com.

Tyson Foods is closing its beef-processing works successful Lexington, Nebraska, nether a scheme to “right size” nan struggling conception of nan US giant’s nutrient business.

After reporting a twelvemonth of declining beef volumes earlier successful November and pointing to an adjusted operating nonaccomplishment for nan conception successful fiscal 2026, nan meatpacker said it will besides person its beef installation successful Amarillo, Texas, to a single, “full-capacity” shift.

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to scope engaged professionals crossed 36 starring media platforms.

Find retired much

Tyson Foods added nan moves are intended to position nan company’s beef operations for “long-term” success.

The Jimmy Dean and Hillshire Farm brands proprietor said it will summation output astatine different unidentified beef plants to meet customer demand. At nan aforesaid time, nan institution assured it remains “committed” to helping nan affected workers use to positions astatine different accommodation and offering relocation benefits.

The determination follows a reliable 4th fourth successful fiscal 2025, erstwhile “tight” cattle supplies drove Tyson Foods’ beef conception deeper into nan red.

Beef registered an adjusted operating nonaccomplishment of $94m for nan quarter, compared to a $71m nonaccomplishment posted a twelvemonth earlier.

Sales for beef roseate to $5.49bn from $5.26bn, driven by a 17% summation successful mean prices but pinch an 8.4% diminution successful volumes.

For nan afloat fiscal twelvemonth 2025, nan beef segment’s adjusted operating nonaccomplishment widened to $426m from a $291m nonaccomplishment and income accrued to $21.6bn from $20.5bn.

While nan dollar worth of beef income accrued owed to higher prices, nan measurement of beef sold fell by 1.9% for nan afloat year.

“The beef conception remains our only soft spot,” president and CEO Donnie King said successful his results chat with analysts, adding chickenhearted income are expected to return up nan slack successful fiscal 2026 for Tyson’s 2 biggest gross earners.

Tyson projected an adjusted operating nonaccomplishment successful nan beef conception of $400m to $600m for fiscal 2026. Meanwhile, nan US Department of Agriculture forecasts home beef accumulation will autumn different 2% that year.

“Cattle supplies are astatine grounds lows owed to drought, imaginable herd rebuilding, and nan effect of caller world screwworm successful Mexico. These factors created marketplace headwinds during nan quarter,” King said.

In nan caller year, King and recently installed COO Devin Cole said nan challenges revolve astir nan imaginable that tight proviso will beryllium hampered by heifer retention, aliases holding female carves backmost to subordinate nan beverage aliases breeding herd alternatively than releasing them for slaughter.

“Looking forward, we expect cattle supplies to stay tight arsenic we move into 2026. During this period, chickenhearted is apt to use astir from changing user preferences, some astatine unit and successful foodservice,” King said.

He added that “more heifer retention implies little beef successful nan adjacent term”, which “means proviso of market-ready cattle will autumn earlier it increases successful early years”.