Tyson Foods has announced plans to close its beef plant in Joslin, Illinois, and its case-ready facility in Eagle Mountain, Utah, while also seeking a buyer for its beef plant in Pasco, Washington.
The decision follows a $138 million operating loss in Tyson’s beef unit caused by an ongoing national cattle shortage, rising operational costs, and declining retail meat demand driven by inflation.
The Illinois shutdown alone is expected to result in roughly 2,500 union job losses, federal officials representing the state said in a news release. More than 7,000 employees will lose jobs at the Utah plant.
The Cattle Supply Crisis
The closures reflect broader industry pressures from multi-decade low US cattle inventories. Pest-related import limitations have also contributed to the shortage, forcing competitors like JBS to shut facilities after posting significant net losses.
The US cattle herd has been shrinking for years due to drought, high feed costs, and economic pressures on ranchers. The result is a supply crunch that has made it difficult for meatpackers to maintain operations at full capacity.
Tyson’s Response
To maintain processing capacity, Tyson plans to consolidate primary beef operations across facilities in Amarillo, Texas; Holcomb, Kansas; and Dakota City, Nebraska. The company is reinstating a second shift in Amarillo as part of the consolidation.
The move is designed to “streamline operations and improve efficiency,” according to company statements. However, the job losses will be significant in the affected communities.
The Broader Impact
The closures come as inflation continues to pressure consumer spending on meat products. Retail beef demand has declined as households tighten budgets, compounding the challenges facing meatpackers.
The US Department of Agriculture has projected that beef production will continue to decline as the cattle herd contracts, keeping prices high for consumers.
The Bottom Line
Tyson Foods is closing two beef plants and selling a third as the US cattle supply crisis worsens. The company reported a $138 million operating loss in its beef unit due to a national cattle shortage, rising costs, and declining retail demand. Over 2,500 jobs will be lost in Illinois alone, with more than 7,000 affected in Utah. Competitors like JBS are facing similar pressures.
