Tyson Foods Inc. (NYSE:TSN) said Thursday it will close two beef facilities and sell a third as the meatpacker restructures its beef operations amid a historic U.S. cattle shortage that has pushed livestock costs higher.

The company announced on Thursday that it will be closing or selling three of its beef facilities, which include a beef plant in Joslin, Illinois, a case-ready beef facility in Eagle Mountain, Utah, and a beef plant in Pasco, Washington, which Tyson is considering selling.

Tyson Foods plans to transfer the processing capacity from these facilities to other sites, centering its beef business around its plants in Dakota City, Nebraska; Holcomb, Kansas; and Amarillo, Texas. The company has not disclosed how many employees or cattle will be affected.

The company, meanwhile, plans to restore a second shift at its Amarillo plant as cattle supplies improve, while helping affected workers from Illinois, Utah and Washington find positions at other facilities.

Beef Supply Crisis Puts Tyson Under Pressure

Texas Agriculture Commissioner Sid Miller told Reuters that Tyson’s decision highlights the severity of the U.S. cattle shortage, with the supply crunch now affecting the entire beef industry and supply chain.

U.S. cattle supplies fell to a 75-year low as prolonged Western drought devastated grazing lands, while Washington suspended cattle imports from Mexico to prevent the spread of the New World screwworm livestock pest.

This is not the first time Tyson has had to close a facility due to the cattle shortage. Earlier this year, the company shut down its beef plant in Lexington, Nebraska, due to the same issue.

TSN Price Action: On a year-to-date basis, the stock declined 2.84%, as per Benzinga Pro. On Thursday, TSN ended 1.04% higher at $56.39.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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