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Tyson Foods to Close Beef Processing Plant, Lay Off Over 3,200 Workers
Tyson Foods has announced the closure of one of its largest beef processing plants, resulting in the layoff of more than 3,200 workers. The decision comes as U.S. cattle shortages put pressure on major meatpackers.
Plant Closure Details
- The meat giant will cease operations at its meatpacking facility in Lexington, Nebraska, and reduce production at its Amarillo, Texas facility to a single full-capacity shift.
- Tyson stated that these actions are necessary to optimize its beef business for long-term success. Production will be increased at other beef facilities to meet demand and offset volume losses from the closed plant.
Industry Challenges
The closure comes at a time when U.S. cattle herds are at a 75-year low, with factors such as climate challenges, economic hardships, and the threat of the New World screwworm contributing to supply constraints. This has led to a surge in beef prices, with ground beef costs exceeding $6 per pound as of September.
Tyson’s beef sales have risen due to higher prices, but the company faces challenges with escalating cattle costs. To address this, Tyson plans to focus on efficiency, cost reduction, and innovation in its products.
Impact on Community
The closure of the Tyson plant in Lexington is expected to affect 3,200 jobs in a community with a population of approximately 11,000. Lawmakers and officials have expressed disappointment over the closure, emphasizing the importance of the cattle industry to the state.
Despite the challenges, Nebraska Governor Jim Pillen remains optimistic about the state’s cattle industry, noting that Tyson has pledged to explore future value-added opportunities in the region. He reassured employees that the state is committed to supporting them through this transition.