JBS USA Closes Two Plants, Cuts 2,000 Jobs Amid Cattle Shortage

JBS USA announced on June 12 the closure of two beef processing facilities, eliminating approximately 2,000 jobs. The Souderton, Pennsylvania plant will close by August 14, 2026, cutting 1,485 positions. The Memphis, Tennessee facility will cut 208 jobs. The shutdowns reflect a severe U.S. cattle shortage and margin pressure squeezing the world’s largest meatpacker despite record beef prices.

Historic Cattle Shortage Drives Plant Closures

The U.S. cattle herd stood at only 86.2 million head in January 2026, the smallest level since 1951. A May 2025 federal ban on Mexican cattle imports to prevent screwworm spread further tightened supply. These constraints have squeezed meatpacker margins despite record beef prices, forcing JBS to consolidate operations.

Souderton Plant Represents Major Regional Loss

The Souderton facility has operated since 1877 and became one of Montgomery County’s top employers. United Food and Commercial Workers Local 1776, representing employees since 2010, vowed to fight the closure. The union stated the shutdown would be devastating for the region and its members. JBS CEO Wesley Batista Filho said production will be absorbed into other network operations.

Beef Prices Surge as Supply Tightens

Organic 90% lean ground beef averaged $11.99 per pound this week, while conventional 90% lean beef was $7.42. Budget-friendly 70% lean ground beef cost $4.99, up from $4.67 a year ago. Ground beef prices jumped 76% over five years from $2.84 in 2021, driven by herd depletion and strong demand from wealthy consumers and GLP-1 drug users seeking protein.

Industry Consolidation Reflects Structural Pressures

JBS emphasized it is investing in modernization and expansion elsewhere despite the closures. The company said these decisions directly affect team members and communities. The closures are part of broader industry contraction driven by cattle scarcity. Ranchers have downsized herds due to drought, rising feed costs, and operating expenses over several years.

Final Thoughts

JBS USA’s plant closures signal structural strain in U.S. beef processing as cattle supplies remain historically tight. With 2,000 jobs eliminated and beef prices up 76% in five years, consumers face sustained price pressure while the industry consolidates around available supply.

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