Tyson Foods announced the closure of one of its largest beef processing plants in Nebraska. The company is the country’s largest meat supplier, and the move coincides with both a cattle shortage and pressure from the Trump administration to lower beef prices.

The company is the first of the big four meatpacking companies to close a major plant during this supply crunch. Current cattle supplies on pastures are the lowest they’ve been since the 1950s. In response to low supplies and strong consumer demand, livestock prices have reached all-time highs this year.

In addition to the Trump administration’s pressure to lower beef prices, the President announced earlier this month that the Justice Department was investigating meatpacking companies for conspiring to drive up prices. The administration has also moved to increase cattle imports from Argentina and Brazil to combat high prices.

Ranchers have been reluctant to expand their herds and are instead using high incomes to pay down debt and invest in higher-quality cattle.

Tyson reported an adjusted loss of $426 million from its beef business for the 2025 fiscal year, with cattle costs nearly $2 billion higher than in the 2024 fiscal year. The company also said it expected to lose as much as $600 million in its beef sector for fiscal year 2026.

The Lexington, Nebraska, plant has the capacity to slaughter nearly 5,000 cattle per day and employs around 3,200 people. Nebraska Senator Deb Fischer said it was the city’s largest employer, and that the closure would have a devastating impact on the city and region.

The closure of the plant could impact beef production, tightening supplies and increasing prices for consumers. Nebraska feedlot operators expressed concern that having one less large buyer of livestock could impact their revenue.

Tyson Foods also announced it was cutting a Texas facility down to one shift from two at a plant that can currently slaughter 6,000 cattle per day. The change is expected to affect 1,700 employees at the facility.

February live cattle and January feeder cattle futures traded limit-down on Monday’s open following the news.
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