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Tyson to Shut Nebraska Beef Plant, Cut Texas Shifts, Removing Up to 9% of U.S. Capacity

The moves reflect a deep cattle shortage that has turned Tyson’s beef unit unprofitable.

Overview

  • Operations will end at Tyson’s Lexington, Nebraska plant by January 20, 2026 and the Amarillo, Texas facility will run a single shift, affecting about 3,200 and 1,700 workers respectively in a town where the plant employs roughly one third of residents.
  • The Lexington facility can process about 5,000 cattle per day and, together with the Amarillo reduction, the cuts are estimated to remove 7–9% of national beef slaughter capacity.
  • Tyson says it will boost output at other plants to meet demand and will help affected employees apply for openings at other facilities with relocation assistance.
  • The company reported an adjusted $426 million loss in its beef business over the 12 months ending Sept. 27, 2025 and projects a $400 million to $600 million operating loss in fiscal 2026.
  • Economists say grocery prices may hold steady in the near term as current cattle finish out, but costs could keep rising without herd rebuilding over several years as the U.S. cattle inventory sits near a 70‑year low and imports from Brazil expand after tariff cuts and as DOJ scrutiny of packers proceeds.