Tyson to realign its beef network
Tyson Foods, Springdale, Arkansas, is making strategic changes to its beef operations to position the company for long-term success, according to a company news release..
Tyson Foods will anchor its beef business around three strategically located beef facilities in the central United States: Dakota City, Nebraska; Holcomb, Kansas, and Amarillo, Texas, to create a more competitive footprint amidst one of the most historic cattle shortages the country has ever experienced. Recent U.S. Department of Agriculture cattle inventory data, which included continued evidence of limited heifer retention, indicates these supply constraints are likely to persist, requiring strategic action.
In its August quarterly report, Tyson noted in it its beef division, USDA projects domestic production will decrease approximately 3% in fiscal 2026 as compared to fiscal 2025.
“We anticipate segment operating loss, as adjusted, of $(650) million to $(500) million in fiscal 2026,” the company said in that report.
The company will end operations at its Joslin, Illinois, beef facility and its Eagle Mountain, Utah, case-ready facility, the company said in its Aug. 13 news release. Capacity from these locations will be moved to more strategically located facilities with ample capacity to grow. Additionally, Tyson Foods is pursuing the sale of its Pasco, Washington, beef facility. With these changes, the company will ramp back up a second shift at its Amarillo, Texas, facility as cattle become available. Collectively, these changes will allow the company to maintain a similar level of cattle harvesting across a more efficient and modern network.
In January, the Tyson Foods closed its plant in Lexington, Nebraska.
Tyson Foods recognizes the impact these decisions have on team members and communities, the company stated, adding it is committed to supporting our team members through this transition, including helping them apply for open positions at other facilities.
With these changes, Tyson Foods is ensuring that it will continue to deliver high-quality, affordable, and nutritious protein for future generations, the release stated.
For more information, visit tysonfoods.com.
