November 27, 2025

 

Tyson to shut down Nebraska, US beef plant

 

 

Tyson Foods, Inc. is closing its beef plant in Lexington, Nebraska, the United States.

 

"To meet customer demand, production will be increased at other company beef facilities, optimising volumes across our network," the company said. "Tyson Foods recognises the impact these decisions have on team members and the communities where we operate."

 

Specifically, the company said it will convert its Amarillo, Texas, beef plant to a single, full-capacity shift.

 

The announcement follows the company's most recent financial results, in which its beef business unit incurred an operating loss of $1.1 billion on sales of $21.6 billion during fiscal year 2025.

 

Severe drought in some cattle producing regions has disrupted the cattle cycle, where beef producers retain heifers to increase the beef supply, and it has severely impacted Tyson's Beef business unit.

 

The US Department of Agriculture is forecasting US production of beef will decrease approximately 2% in 2026 as compared with 2025.

 

"Despite these challenges, we are strengthening our fundamentals by prioritising efficiency, reducing costs, and introducing innovative products," said Donnie King, president and chief executive officer, during a November 10 conference call to discuss fiscal 2025 results. "This positions us to emerge stronger in beef when market conditions improve. Looking forward, we expect cattle supplies to remain tight as we move into 2026."

 

In fiscal 2026, Tyson Foods is projecting its beef business will incur a loss of between US$400 million and US$600 million.

 

The US Department of Agriculture is forecasting domestic production of beef will decrease approximately 2% in 2026 as compared with 2025, according to Tyson Foods.

 

King said in addition to the impact of heifer retention, the border closure between Mexico and the United States due to New World screwworm also is having an impact on US beef supply.

 

- Food Business News