Tyson Foods To Shut Down Major Beef Plant In Nebraska Weeks After Trump Launched Probe On Meatpackers

Tyson Foods Inc. (NYSE:TSN) has announced the closure of its beef plant in Lexington, Nebraska, to “position” itself for long-term success.

Historic Cattle Lows Force Tyson Cuts

The meat processing giant’s decision to close the Nebraska plant was prompted by the lowest U.S. cattle supplies in nearly 75 years. The plant is set to cease operations in January, with the company also scaling back its Amarillo, Texas facility to a single shift.

“Tyson Foods recognizes the impact these decisions have on team members and the communities where we operate,” the company stated, expressing its understanding of the repercussions of these changes. Tyson plans to increase production at other facilities to meet customer demand.

Mark Lauritsen, Director of the Food Processing, Packing and Manufacturing Division and International Vice President at UFCW International called the decision of Tyson Foods “devastating.”

“When a company as large and as profitable as Tyson shuts down a facility like this, it is the community – not the corporation – that pays the biggest price,” said Lauritsen.

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Rising Beef Costs Trigger Scrutiny

The U.S. beef industry has been facing significant challenges, including a shortage of cattle and soaring prices. This has been attributed to various factors, including alleged price manipulation by major meatpacking companies, as highlighted by President Donald Trump.

Trump had directed the Justice Department to investigate these companies for market distortions and price manipulation. The Trump Administration mentioned that the "Big Four" meat packers — JBS (Brazil), Cargill, Tyson Foods, and National Beef, dominate 85% of the U.S. beef processing market at present.

Additionally, Trump’s decision to eliminate tariffs on certain Brazilian exports was aimed at addressing the rising grocery prices, including those of beef. This move was made in the context of ongoing trade negotiations with Brazil, a significant player in the global beef market.

Chicken Strength Lifts Tyson

Meanwhile, despite ongoing challenges, Tyson Foods has been able to maintain its financial stability through its chicken business.

Goldman Sachs analyst Leah Jordan said confidence in Tyson's diversified protein strategy remains strong, noting that gains in chicken should balance weakness in beef as operations improve. Tyson projects 2026 sales growth of 2%–4%, outpacing analyst expectations.

Benzinga's Edge Rankings place Tyson Foods in the 16th percentile for quality and the 44th percentile for growth, reflecting average performance. Check the detailed report here. 

On a year-to-date basis, Tyson Foods stock declined 7.7%.

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