Tyson to Shutter Nebraska Beef Plant in January

Tyson Foods announced plans Friday to close one of its largest beef production plants located in Nebraska in January and increase operations at other plants as the national beef market dips to its lowest level in nearly 75 years.

The global meat company also plans to downgrade its Amarillo, Texas, beef facility to a single, full-capacity shift and increase production at other plants to optimize volume.

Tyson’s Lexington, Nebraska, facility was capable of processing thousands of cattle daily, according to the industry’s Cattle Report.

“The decision comes amid historically tight U.S. cattle supplies, which have dropped to their lowest levels in nearly 75 years, creating significant cost pressures for meatpackers,” the Cattle Report stated.

About 3,200 employees at the Nebraska facility will be supported and offered help to apply to other open positions at the company’s locations and given relocation benefits, according to the announcement.

“With these changes, Tyson Foods is ensuring that it will continue to deliver high-quality, affordable, and nutritious protein for generations to come,” the company stated in its announcement.

In response to Tyson’s announcement Friday, the National Cattlemen’s Beef Association (NCBA), a trade group for cattle producers with over 25,000 members, said the decision was disappointing.

“NCBA is disappointed in the closure of the beef processing facility in Lexington,” said NCBA CEO Colin Woodall told The Epoch Times in an email. “Similarly, the reduction in operations at the beef processing plant in Amarillo. This raises concerns about the impact on family ranchers, but it is the unfortunate result of the industry experiencing excess processing capacity in the face of historically low cattle numbers.”

The association is monitoring the situation and working to ensure the beef supply chain continues to function properly, Woodall said.

Nebraska Gov. Jim Pillen noted the state’s cattle industry can bounce back despite the closure.

“Nebraska’s cattle industry is resilient and the envy of the world,” Pillen said in a statement. “And our workforce can outwork anybody. Big picture—our excellent cattlemen and cattle feeders have emerging opportunities and will still have the Tyson market to sell into as its planned reorganization will boost capacity and jobs at other Nebraska plants.”

Tyson Foods operates five other meat processing plants in the state.

News of the closure was disappointing for some state officials.

Rep. Adrian Smith (R-Neb.), who represents the area, said he was ready to support the community.

“Today’s announcement by Tyson Foods is a disappointing loss for Lexington, Dawson County, the region, and the cattle industry as a whole,” Smith said in a statement. “Nebraska’s hard-working cattle producers are innovative and highly efficient as they work to provide high quality beef for consumers.”

Smith encouraged input from local beef producers and said he stood ready to help the community as it moved forward.

Sen. Deb Fischer (R-Neb.) blasted Tyson’s decision Friday, calling it short-sighted.

“I am extremely disappointed by this news from Tyson today,” Fischer said in a statement. “As the single largest employer in Lexington, Tyson’s announcement will have a devastating impact on a truly wonderful community, the region, and our state. Nebraska is a beef state, and we know better than anyone the highs and lows of the cattle market.”

“It’s no secret that just a few years ago, packers like Tyson were making windfall profits while the rest of the industry was continuously in the red,” she added.

Fischer also urged Tyson to “do everything in its power” to help the affected families through the holiday season.

President Donald Trump said last month he was working to bring down prices in the beef industry. Cattle growers have been concerned recently about his administration’s moves that have hurt the domestic industry.

Trump issued an executive order Thursday removing tariffs on Brazilian beef and coffee, along with other agricultural products affected by the 40 percent tariff policy he set in July.

The order targets goods imported on or after Nov. 13 and could involve refunds for duties collected after that day.