Tyson foods to Close Nebraska Beef Plant, Impacting Local Community and National Cattle Industry
LEXINGTON, NE – Tyson Foods announced today it will permanently close its beef processing plant in Lexington, Nebraska, a move expected to considerably impact the local economy and further strain a struggling U.S. cattle industry already facing falling prices and market uncertainty. The closure will result in the loss of approximately 400 jobs in Lexington, a town heavily reliant on the plant’s economic contributions.
The decision comes as Tyson anticipates exceeding $600 million in losses on beef production this year, adding to over $720 million in red ink reported over the past two years. The Lexington facility, according to Creighton university economist Ernie Goss, “just wasn’t competitive right now in today’s surroundings in terms of output per worker,” and struggled to integrate modern technological advancements. “It’s very difficult to renovate or make the old plant fit the new world,” he stated.
Nationwide, the meat processing industry has faced excess capacity, meaning existing slaughterhouses could handle a significantly higher volume of cattle. This situation has been exacerbated by government initiatives encouraging the opening of smaller, competing facilities. Kansas State University agricultural economist Glynn Tonsor noted that it was “unavoidable that at least one beef plant would close,” and anticipates Tyson’s remaining facilities will operate more efficiently at full capacity.
The plant closure adds to existing anxieties within the cattle ranching community. Falling cattle prices, coupled with increasing beef imports – particularly from Brazil, which already accounts for 24% of U.S.beef imports this year – are eroding ranchers’ confidence. Bill Bullard, president of Ranchers-Cattlemen Action Legal Fund United Stockgrowers of America, explained, “There’s just a lack of confidence in the industry right now. And producers are unwilling to make the investment to rebuild.”
While former President Trump has suggested increasing beef imports from Argentina, experts beleive increased imports from Brazil will have a more ample impact on the market due to the larger volume of beef it sends to the U.S. Though, consumers are unlikely to see a significant drop in steak prices, as most imported beef consists of lean trimmings used in ground beef.
Despite market volatility,consumer demand for beef remains strong,with Americans projected to consume an average of 59 pounds (27 kilograms) per person this year,according to Tonsor. However, the future of the U.S. cattle business remains uncertain, with fluctuating tariffs and import levels adding to the complexity of the situation.
(Associated Press writer Hannah Fingerhut contributed to this report from Des Moines, Iowa.)
Copyright 2025 the Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
