Tyson Foods plans to shut down one of its largest beef-processing plants in Nebraska as the U.S. cattle shortage continues to pressure the industry, according to the Wall Street Journal. The plant is scheduled to close on January 20. In addition, the company will shift its Amarillo, Texas, beef facility to a single full-capacity shift.
The Lexington, Nebraska, plant employs roughly 3,000 workers and has the capacity to slaughter about 5,000 head of cattle per day, according to industry estimates. It is one of Tyson’s 11 beef plants and among its largest.
Tyson becomes the first of the four major industrial processors — which together handle 85% of U.S. beef production — to shut down a major facility during the current cattle supply crisis. These packers, including Tyson, have been suffering substantial financial losses in their beef operations as cattle numbers have fallen to their lowest levels since the 1950s.
In a press release, Tyson Foods acknowledged the impact these decisions have on employees and the communities where it operates. The company committed to supporting its workforce during the transition, including helping employees apply for openings at other facilities and offering relocation benefits.
In its latest financial report, Tyson Foods posted an operating loss of US$ 1.135 billion for its beef division for the fiscal year ending September 27.
