Tyson Foods today announced network restructuring for its beef business to strengthen long-term performance.
According to the company’s website, “Tyson Foods is making strategic changes to its beef operations to position the company for long-term success. Tyson Foods will anchor its beef business around three strategically located beef facilities in the central United States: Dakota City, Neb.; Holcomb, Kan., and Amarillo, Texas, to create a more competitive footprint amidst one of the most historic cattle shortages the country has ever experienced. Recent USDA cattle inventory data, which included continued evidence of limited heifer retention, indicates these supply constraints are likely to persist, requiring strategic action.”
The company will end operations at its Joslin, Ill., beef facility and its Eagle Mountain, Utah, case-ready facility. Capacity from these locations will be moved to more strategically located facilities with ample capacity to grow. Additionally, Tyson Foods is pursuing the sale of its Pasco, Wash., beef facility.
A letter sent to Joslin team members that was shared with Drovers says: “Job duties in harvest operations will end on or around Aug. 13, 2026, and duties in processing operations will end on or around Aug. 14, 2026. Most team members will not be required to work past those dates. However, you will be compensated through Oct. 12, 2026, and your employment will not be terminated until that date.”
The Joslin facility employs more than 2,000 people. According to John Nalivka of Sterling Marketing Inc., Joslin daily harvest capacity was 3,100 head and Pasco 2,300 cattle a day.
Nalivka, who authors Profit Tracker, says, “I often indicated, the industry will reduce capacity in the face of tight cattle numbers.”
With the announced changes, Tyson says it will ramp back up a second shift at its Amarillo, Texas, facility as cattle become available. Current daily capacity in Amarillo is 2,750. Tyson reduced Amarillo to one shift in January when it also closed its Lexington, Neb., facility.
“Collectively, these changes will allow the company to maintain a similar level of cattle harvesting across a more efficient and modern network,” the announcement says.
Tyson Foods says it recognizes the impact these decisions will have on team members and communities. The company is committed to supporting its team members through this transition, including helping them apply for open positions at other facilities.
“Obviously this beef market, it hasn’t been good for the packers. I mean, this was going to happen. We just didn’t think Tyson was going to do all of it,” says Zach Tindall of Producers Livestock Marketing.
Tindall was a guest on AgriTalk Thursday afternoon. Listen to the conversation here:
Statement on Tyson’s Plan to Close Plants and Anchor its Beef Business in the Central U.S.:
“Today’s announcement from Tyson to centralize their beef packing capacity and close plants is reflective of the current situation in the packing industry, as they face reduced profitability and tight cattle supplies,” says Texas Cattle Feeders Association Chairman Laphe LaRoe. “Reports indicate minimal heifer retention and pending the border reopening later this month, there remains a gap in feeder cattle supply from Mexico. All this combined has led to the perfect storm for the packing industry to reduce harvest capacity.”
LaRoe adds TCFA is grateful the Tyson plant in Amarillo remains online as it is a key part of beef production in the area. “We look forward to the eventual move back to two shifts and the assurance of packing capacity in the region.”
Your Next Reads:
