Tyson Foods closes beef facilities due to historic cattle shortage

In the United States, Tyson Foods announced on August 13, 2026, that it will close two of its beef processing facilities and is actively seeking to sell a third. The closures include the Joslin, Illinois beef plant and the Eagle Mountain, Utah case-ready facility. The company is pursuing the sale of its Pasco, Washington beef facility as part of a strategic restructuring of its beef operations. This decision comes in response to a significant cattle shortage that has been affecting the meatpacking industry, leading to increased beef prices for consumers and operational challenges for meatpackers.

The cattle shortage has been attributed to various factors, including drought conditions that have reduced forage areas in key ranching regions. This has forced many ranchers to liquidate their cattle, resulting in a historically low U.S. cattle herd. Tyson Foods highlighted that recent USDA cattle inventory data indicates continued limited heifer retention, suggesting that these supply constraints are likely to persist. As a result, the company is making strategic changes to its beef business to adapt to the ongoing challenges in the market.

Tyson Foods plans to consolidate its beef operations around three strategically located facilities in the central United States: Dakota City, Nebraska; Holcomb, Kansas; and Amarillo, Texas. This consolidation aims to create a more competitive footprint in the face of the cattle shortage. The company has stated that capacity from the closed facilities will be shifted to other locations that have ample capacity for growth. Additionally, Tyson intends to ramp up a second shift at its Amarillo plant as more cattle become available, which reflects the company's efforts to maintain a similar level of cattle harvesting across a more efficient network.

The closures and restructuring are expected to impact employees at the affected facilities. Tyson Foods has committed to supporting its team members during this transition, including assisting them in applying for open positions at other Tyson facilities. The changes come at a time when American consumers are facing elevated beef prices, and the meatpacking industry is grappling with tight cattle supplies and rising operational costs. Tyson's CEO, Donnie King, acknowledged the challenges faced by the beef sector, stating that the performance of beef has not met the company's expectations.