Why is Tyson shutting down plants? Major American meat supplier issues statement

Tyson Foods has recently confirmed the shutdown of its beef plant in Lexington. The decision was announced last week on Friday, November 21. The beef plant going for closure will witness certain changes from January next year, as reported by Fox Business.

The company has faced losses of around $426 million on the beef business at the end of the 2025 fiscal year, as per The Independent. The closing down of the plant has emerged from the current supply issues.

Notably, the industry is additionally dealing with high livestock prices and the consequences of the beef administration tariffs being lifted by Donald Trump’s government. The President of the United States also supported his decision this month while speaking to the reporters by saying that the prices were higher at the time of Joe Biden, and he can now reduce them in a few cases.

Almost 3,200 people have been working at the Lexington plant, and the operations would be reduced at an Amarillo-based plant, impacting almost half of the employees, as per Fox Business. The outlet even obtained a statement from Tyson Foods about the plant’s shutdown.

“Tyson Foods recognizes the impact these decisions will have on team members and the communities where we operate. The company is committed to supporting our team members through this transition, including helping them apply for open positions at other facilities and providing relocation benefits,” the company said.

However, the multinational corporation said that it is committed to providing the best quality protein for the upcoming generations. Notably, the company’s ongoing losses have been a result of consumers demanding more beef and a reduction in the cattle supplies in the United States.

Nebraska Governor and many others react to the closure: Tyson Foods losses and more explained

As per the Associated Press, the company would provide the employees with the opportunity to join their remaining plants. However, they have advised the workers to take the option if they are ready to shift to other places with their families.

Nebraska Governor Jim Pillen also responded to the closure of the Tyson Foods plant while speaking to the Nebraska Examiner. Pillen revealed that his team has met the company officials, and they learned that the inefficiencies of the plant have additionally led to the shutdown. Addressing the future of the plant, Pillen added:

“There [are] discussions going on within the Tyson organization, ‘How can we turn that plant into a value-added plant with either pork, beef or poultry because they’re in that space.’ That’s a real-life possibility.”

While Tyson Foods has been leading in the beef business along with other companies, the situation has changed, with small companies being advised to launch slaughterhouses, increasing the competition. Moreover, Tyson has reportedly suffered losses of around $720 million for almost two years.

Lexington’s Chamber of Commerce Vice President, Clay Patton, stated that although one of the plants is shutting down, the operations will improve in the others. The Independent obtained a statement from the Nebraska Cattlemen Board of Directors, which expresses dissatisfaction over the closure, as it reads:

“We firmly believe there isn’t a better place to efficiently and economically raise cattle and produce beef than Nebraska. This will have a profound impact on the community of Lexington and many cattle producers.”

Apart from beef, Tyson Foods is also known for processing and marketing other products like chicken and pork, and owns food companies such as Ball Park and more.