### Tyson Foods to Close Major Beef Plant Amidst Record Low Cattle Supplies Tyson Foods has announced the closure of its beef processing plant in Lexington, Nebraska, which employs approximately 3,200 workers. This decision comes as U.S. cattle supplies have plummeted to their lowest levels in nearly 75 years, significantly impacting the beef industry. The closure is part of a broader trend affecting the U.S. cattle sector, characterized by tightening packing capacity and increased market volatility for producers and feedyards. The company is also facing substantial financial losses, estimated at $600 million in its beef business, prompting a strategic shift in operations to focus on more profitable locations [https://sundayguardianlive.com/business/tyson-foods-to-close-us-beef-plant-as-cattle-supplies-dwindle-161029, https://finance.yahoo.com/news/tyson-foods-to-close-nebraska-plant-as-it-faces-600-million-loss-in-beef-business-214329463.html]. ### Overview of Tyson Foods' Strategic Changes 1. **Closure of Lexington Plant**: - Tyson Foods will cease operations at its Lexington facility in January 2026, affecting around 3,200 employees [https://sundayguardianlive.com/business/tyson-foods-to-close-major-us-beef-plant-as-cattle-supplies-dwindle-160997]. 2. **Reduction in Texas Operations**: - The company will also convert its beef processing plant in Amarillo, Texas, to a single shift, further reducing operational capacity [https://www.foodprocessing.com/ingredients/animal-proteins/news/55332156/tyson-to-close-lexington-nebraska-beef-plant-cut-amarillo-texas-plant-to-one-shift]. 3. **Market Conditions**: - The closure reflects severe supply shortages in the U.S. cattle industry, which has seen a significant decline in cattle numbers, leading to increased beef prices and reduced competition among processors [https://www.rfdtv.com/tyson-plant-changes-signal-pressure-on-u-s-beef-sector]. ### Supporting Data on Cattle Supply and Industry Impact - **Cattle Supply Decline**: U.S. cattle supplies have reached their lowest levels in nearly 75 years, contributing to the decision to close the Lexington plant [https://www.canadiancattlemen.ca/daily/tyson-foods-to-close-u-s-beef-plant-as-cattle-supplies-dwindle]. - **Financial Losses**: Tyson Foods is facing a staggering $600 million loss in its beef business, which has prompted the company to reevaluate its operational strategy [https://finance.yahoo.com/news/tyson-foods-to-close-nebraska-plant-as-it-faces-600-million-loss-in-beef-business-214329463.html]. - **Employee Impact**: The closure will directly affect approximately 3,200 employees, highlighting the significant human cost of these operational changes [https://sundayguardianlive.com/business/tyson-foods-to-close-us-beef-plant-as-cattle-supplies-dwindle-161029]. ### Conclusion: Implications of Tyson Foods' Closure In summary, Tyson Foods' decision to close its Lexington beef processing plant is a direct response to unprecedented challenges in the U.S. cattle industry, including record-low cattle supplies and substantial financial losses. The closure not only impacts thousands of employees but also signals a shift in the operational landscape of the beef sector, which may face further volatility in the coming years. 1. **Closure Announcement**: Tyson Foods will close its Lexington plant, affecting 3,200 jobs. 2. **Operational Adjustments**: The company will also reduce operations in Texas, indicating a strategic shift. 3. **Market Pressures**: The beef industry is experiencing significant supply shortages and financial losses, leading to increased prices and reduced competition. These developments underscore the ongoing challenges faced by the U.S. beef sector and the need for strategic adaptations in response to market conditions [https://sundayguardianlive.com/business/tyson-foods-to-close-us-beef-plant-as-cattle-supplies-dwindle-161029, https://www.rfdtv.com/tyson-plant-changes-signal-pressure-on-u-s-beef-sector].