Tyson, America’s biggest meat supplier, plans to shutter one of its largest beef processing plants as the industry continues to struggle with low cattle supplies and political pressure from Washington.
The company reportedly plans to lay off more than 3,200 people at its Lexington, Nebraska, plant, by January 20, while increasing production elsewhere.
Tyson, the first of the big four major meat processors to close a plant in response to the shortage, said the decision was meant to “right-size its beef business and position it for long-term success” during the ongoing supply crunch.
Thanks to a combination of drought, pandemic, rising costs, and pests, U.S. pastures have the lowest number of cattle since the 1950s. Demand, meanwhile, has remained steady, pushing livestock prices to an all-time high.
These trends, combined with nearly a year of Trump administration tariffs on beef, which were lifted earlier this month, have squeezed the industry.
In the recently ended 2025 fiscal year, Tyson reported an adjusted loss of $426 million on its beef business, and company officials told investors on an earnings call this month they expect operating losses between $400 million and $600 million this fiscal year.
Nebraska leaders criticized the decision to close the plant.
“We firmly believe there isn’t a better place to efficiently and economically raise cattle and produce beef than Nebraska,” the Nebraska Cattlemen Board of Directors said in a statement to the Nebraska Examiner. “This will have a profound impact on the community of Lexington and many cattle producers.”
State Sen. Teresa Ibach told KRVN she’s in talks about another buyer taking over the facility.
Senator Deb Fischer of Nebraska, a rancher and member of the Senate Agriculture Committee, said in a statement she is “extremely disappointed” with the news.
“Nebraska is the beef state, and we know better than anyone the highs and lows of the cattle market,” Fischer said. “It’s no secret that just a few years ago packers like Tyson were making windfall profits while the rest of the industry was continuously in the red.”
The closure is another grim sign for an industry that’s already facing considerable pressure from the Trump administration.
Earlier this month, the president, who is facing growing calls to address continued inflation, accused meat packers of artificially inflating prices and asked the Justice Department to open an investigation.
Last month, the president floated buying more beef from Argentina to drive down prices for American consumers.
The Independent has contacted Tyson for comment.
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