Tyson Foods Nebraska shutdown puts ranchers nationwide on edge

Mohan Sinha
30 Nov 2025, 02:07 GMT+10

Tyson Foods’ decision to shut down its beef plant in Lexington, Nebraska — a facility that employs nearly a third of the town’s residents — threatens to upend the local economy and squeeze ranchers across the country
On its own, closing one slaughterhouse might seem modest, but the Lexington plant employs roughly 3,200 people in a city of just 11,000 and can process 5,000 head of cattle a day
Tyson will also cut one of two shifts at its Amarillo, Texas, plant, eliminating another 1,700 jobs

OMAHA, Nebraska: Tyson Foods' decision to shut down its beef plant in Lexington, Nebraska — a facility that employs nearly a third of the town's residents — threatens to upend the local economy and squeeze ranchers across the country.

On its own, closing one slaughterhouse might seem modest. But the Lexington plant employs roughly 3,200 people in a city of just 11,000 and can process 5,000 head of cattle a day.

Tyson will also cut one of two shifts at its Amarillo, Texas, plant, eliminating another 1,700 jobs. Together, those moves will remove an estimated seven to nine percent of America's beef processing capacity.

Consumers likely won't see an immediate price shift at grocery stores because cattle already in the pipeline will still be slaughtered, though possibly at other plants. Over time, however, beef prices — already at record highs due to drought, tariffs, and other pressures — could climb even further unless ranchers choose to raise more cattle. At the moment, they have little incentive to expand herds.

President Donald Trump's recent move to slash tariffs on Brazilian beef could soften the blow for shoppers by increasing imports from the world's largest beef exporter. But while more Brazilian beef may help hold down prices, it arrives at a difficult moment for U.S. ranchers already squeezed by high costs and declining profits.

The news has left Lexington reeling. Clay Patton, vice president of the local Chamber of Commerce, said Tyson's announcement felt like a "gut punch" to the surrounding Platte River Valley. When the plant first opened in 1990 — before later being acquired by Tyson — it transformed a struggling town by drawing thousands of immigrant workers and nearly doubling the population.

Its closure in January will send shockwaves through the community, threatening family businesses, new housing developments, and the town's economic foundation. Tyson has said it will offer workers positions at other plants, but those jobs may be hundreds of miles away.

"I'm hopeful that we can come through this and actually become better on the other side," Patton said, though he acknowledged the uncertainty ahead.

Elmer Armijo, who moved to Lexington last year to lead First United Methodist Church, said the community he found was stable and thriving — with steady jobs, strong schools, and solid health care. Now, many of those strengths feel precarious.

"People are apprehensive," Armijo said. "The economy in Lexington is based on Tyson." Churches and nonprofits are already stepping up with counseling, food assistance, and gas vouchers.

For cattle producers nationwide, the loss of a major buyer and the surge in Brazilian imports — which already account for nearly a quarter of U.S. beef imports — only deepens doubts about profitability. Bill Bullard of the Ranchers-Cattlemen Action Legal Fund said producers lack confidence and see little reason to rebuild their herds. Most imported beef consists of lean trimmings used for ground beef, so steak prices are unlikely to fall even as import volumes shift.

Kansas State University economist Glynn Tonsor noted that it's unclear whether imports will continue to make up roughly 20 percent of supply next year, particularly with tariff policies in flux. What has remained consistent is Americans' appetite for beef: U.S. consumers are expected to eat an average of 59 pounds per person this year.

Meanwhile, the broader meatpacking industry has long struggled with excess capacity, a problem that has been exacerbated by federal policies that encouraged smaller processors to enter the market. Tyson expects to lose more than US$600 million on beef this year, following $720 million in losses over the previous two years. Tonsor said at least one plant closure was inevitable, and Tyson's remaining facilities will now operate closer to full capacity.

Creighton University economist Ernie Goss said the Lexington plant couldn't keep up with the technological demands of the modern meatpacking industry. "It's very difficult to renovate or make the old plant fit the new world," he said. The facility, he added, "just wasn't competitive in today's environment in terms of output per worker."