October 22, 2004

Tyson Beef Plants Slowdown

In response to tight supplies of cattle, Tyson Foods has reduced hours at its beef plants, including Siouxland locations in Dakota City and Denison, Iowa.

"We prefer to operate 48 hours a week," Tyson spokesman Gary Mickelson said Thursday. "Most (plants) have been running 32 to 40 hours a week, and in some cases, plants have gone dark for an entire day during the work week.''

Citing the cyclical rise and fall of cattle herds, Mickelson said such plant slowdowns are not unusual in the fall and winter months, with supplies picking up again in the spring and summer.

Adding to the current tight supplies has been a ban on live cattle imports from Canada, imposed in the wake of the discovery of a case of mad cow disease in that country. The first American case of the disease in Washington state late last year closed out US beef exports to Japan and some other foreign customers. Mickelson said the loss of those exports has contributed to the reduction in production at the Tyson beef plants.

Some other large meatpackers, including Cargill and Swift & Co., have also recently reduced hours or temporarily closed their beef plants.

During the slowdown, Tyson has cut back employees hours, rather than lay off workers, he said.

With around 4,000 workers, Tyson's flagship beef slaughter and processing plant in Dakota City is metro Sioux City's largest employer. The company is in the midst of a multi-million dollar renovation of the facility.