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Tyson to Shutter Nebraska Beef Plant, Cut Amarillo to One Shift as Cattle Supplies Shrink

The company cites cattle shortages driving record costs, with its beef unit projecting a steep annual loss.

Overview

  • Tyson will close its Lexington, Nebraska beef plant and run its Amarillo, Texas facility on a single full-capacity shift, with production shifted to other plants.
  • Changes are expected around January 20 according to Reuters, though Tyson has not publicly specified a date for the shutdown.
  • About 3,200 jobs in Lexington and roughly 1,700 in Amarillo are affected, and the company says it will help employees seek roles at other locations and relocate.
  • U.S. cattle inventories are near 75-year lows, pushing beef prices to records and pressuring processors; Tyson reported a $426 million loss in beef last fiscal year and projects a $400–$600 million loss this year.
  • Lexington has handled roughly 5,000 cattle per day—about 5% of U.S. slaughter—raising local economic concerns as federal scrutiny of major packers’ pricing and recent tariff moves intensify attention on the sector.