Overview
- Tyson has ended operations at its Joslin, Illinois plant and its Eagle Mountain, Utah case-ready facility and is seeking a buyer for its Pasco, Washington beef plant.
- The company reported a recent $138 million operating loss in its beef unit and says weak retail demand and higher procurement costs made the closures necessary.
- To preserve processing capacity Tyson will concentrate beef operations at facilities in Amarillo, Texas; Holcomb, Kansas; and Dakota City, Nebraska and plans to restart a second shift in Amarillo.
- The shutdowns carry heavy local costs with about 2,500 jobs affected at the Illinois plant and thousands more tied to the Utah facility and supplier networks.
- Industrywide pressure from a near 75-year low in the U.S. cattle herd, drought-driven herd shrinkage and pest-related import limits has reduced cattle supply and will slow any near-term recovery as herd rebuilding takes many months.