Tyson Foods announced Thursday that it will permanently close two beef processing facilities and is pursuing the sale of a third, as the company makes strategic changes to its beef business amid a prolonged cattle supply shortage.
The closures affect the company's beef plant in Joslin, Illinois, and its facility in Eagle Mountain, Utah. Tyson said it is also exploring the sale of its plant in Wallula, Washington. The moves are part of an effort to optimize operations and improve efficiency in its beef segment.
The company attributed the decision to a continued decline in cattle availability, which has been exacerbated by drought conditions and herd contraction across the U.S. In recent years, the U.S. cattle herd has been at its lowest levels in decades, driving up input costs and reducing processing volumes.
Tyson said it will work to support affected employees, including offering transition assistance and opportunities to relocate to other company facilities. The company expects to record related charges, but specific financial details were not disclosed.
The announcement reflects broader challenges in the U.S. beef industry, where packers are facing tight supplies and higher costs. Tyson's beef business has been under pressure, and the company has been reviewing its portfolio to focus on more profitable areas.
