Tyson Foods Closes Three Beef Plants, Lays Off 3,200 as Cattle Shortage Deepens

Tyson Foods announced on August 13 that it will close beef processing plants in Joslin, Illinois, and Eagle Mountain, Utah, resulting in layoffs of approximately 3,200 workers. The closures follow a $138 million operating loss in the beef segment and come as U.S. cattle herds hit a 75-year low of 86.2 million head. The company is consolidating operations to three central U.S. locations while also pursuing a sale of its Pasco, Washington facility.

Why Tyson is shutting down beef plants

U.S. cattle herds have fallen to their lowest level in 75 years, creating a severe capacity squeeze across the beef industry. According to industry analyst John Nalivka, average utilization across fed cattle plants is running at 78%, while cow slaughter plants operate at only 55 to 60% capacity. Tyson’s beef segment reported a $138 million operating loss, and executives acknowledged that previous plant closures have not been enough to offset the hit to profits.

The immediate impact on workers and communities

The Joslin, Illinois facility will lay off approximately 2,500 union workers immediately following the August 13 announcement. The Eagle Mountain, Utah plant will lay off up to 723 workers, with operations ending by October 12, 2026. A Chicago-based law firm launched an investigation on August 17 into whether Tyson violated the Worker Adjustment and Retraining Notification Act, which requires 60 days’ notice for mass layoffs. Tyson said affected employees can apply for open positions at other facilities.

Consolidation to three core facilities

Tyson will anchor its beef operations in Dakota City, Nebraska; Holcomb, Kansas; and Amarillo, Texas. The company will ramp back up a second shift at its Amarillo plant after consolidating production there and laying off approximately 1,760 workers late last year. Tyson is also pursuing a sale of its Pasco, Washington beef facility. The National Cattlemen’s Beef Association warned that the Joslin closure will significantly impact cattle producers and rural communities across the Midwest region.

What the stock data shows

Tyson Foods trades at $58.61 with a Meyka grade of B and a neutral recommendation. The stock is up 0.76% today but down 10.9% over three months. Meyka’s 12-month price forecast is $60.09, suggesting limited upside from current levels. Analyst consensus is neutral at 3.0, with two buy ratings and two hold ratings. The RSI sits at 51.94, indicating neither overbought nor oversold conditions, while the Money Flow Index at 23.64 signals weak buying pressure.

Final Thoughts

Tyson’s plant closures reflect an industry-wide crisis: cattle herds at 75-year lows have left packers with excess capacity and mounting losses. With Meyka grading TSN a B and forecasting $60.09 within 12 months, the stock faces structural headwinds from the cattle shortage that restructuring alone may not resolve.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.