Tyson Beef Plant Layoffs Cut U.S. Processing Capacity 7–9% as Beef Demand Rises

The closure of a Tyson beef plant in Lexington, Nebraska, is leaving more than a third of the town unemployed and is expected to cause significant price effects on beef nationwide. 3,200 jobs are lost at the Tyson plant, but a total of 7,000 jobs are expected to be lost as a result of the plant closure. The city of Lexington has a population of 11,000. The move comes as Tyson Foods posted a $1.135 billion loss in fiscal year 2025 for its beef division.

The HighWire has reported about the four big companies that control 85% of the beef industry, and USDA Secretary Brooke Rollins said in October that something needs to be done to decentralize, deregulate, invest in, and incentivize small processors. The Lexington plant has the capacity to process 5,000 head of cattle per day. Tyson will also be cutting two shifts at the Amarillo, TX, beef plant, which will result in 1,700 job losses. The Associated Press reported that these two decisions will reduce nationwide beef processing by 7-9%.

The cattle count in the US is at its lowest rate in 75 years, which has increased the cost of cattle for Tyson’s beef operation. The increased prices for wholesale beef to markets have not overcome the rising costs for Tyson, which looks to “right-size” its beef operations, which will have a larger impact on the greater beef market.

Beef steak is 15% higher than it was last year, while chicken and pork only increased by 1% since last year. A University of Georgia beef report from December of 2024 found that Americans consumed more beef per person since 2009, while beef has reached record prices. They estimated that Americans would consume 6 more pounds of beef per person in 2025 than in 2015.

Drought conditions in the Great Plains and western states have caused ranchers to sell off portions of their herds. Fewer cattle are going to feedlots, and the cost of feed has also continued to increase. The various parts of the cattle supply chain are squeezed and running on thinner margins. The process of increasing herd size involves taking heifers out of production, which creates additional supply shortages, and it takes several years to rebuild herd size.

JBS Foods, one of the big four meat producers, has also recently shut down a California beef-packing plant with an expected 300 layoffs. The facility does not directly process cattle; it prepares beef for sale in grocery stores.

President Trump has moved to increase beef imports from Argentina to help counter the diminishing status of US beef production, a move that has been criticized by American ranchers. At the same time, immigration enforcement could be affecting staffing at meat production facilities, as Steven Hubbard of the American Immigration Council said that approximately 23% of the meat-packing workforce is comprised of undocumented immigrants, and 42% of the total workforce is foreign-born.

Two concurrent dietary and cultural trends are impacting meat consumption in the United States. While efforts to reduce greenhouse gas emissions have become a primary driver for local, state, and federal governments, animal-based agriculture has been blamed for contributing to them. Jefferey Jaxen reported for The HighWire that meat’s GHG emissions have been grossly overstated.

The other trend is high-protein diets, including carnivore and keto-style diets that encourage people to consume more meat for health benefits.

“They’ve gained popularity because they work,” said Michael Ornsbee, director of the Institute of Sports Sciences and Medicine at Florida State University. “People experience tangible benefits like increased satiety, better body composition, and improved performance. There’s also been a shift in public understanding thanks to better education, strong science communication, and professional organizations that have helped dispel myths. High-protein diets appeal across goals — whether you’re trying to lose fat, build muscle or age well — and they’re relatively easy to adopt without eliminating entire food groups. In short, they deliver results, and the science backs them up. 

There are contradictory cultural movements grappling with this increased need for protein. One focuses on new technology to make veggie “hamburger” patties or lab-grown meat, also known as cell-cultivated protein. The other movement encourages small farmers who use regenerative farming practices that help capture carbon in the soil, which can reverse the harm caused by industrial farming practices.

The HighWire recently reported on the global lab-grown meat race, including significant investments in China and investments by three out of the big four meat producers in America, including Tyson and JBS. The HighWire also reported on the recent $700 million initiative by HHS to help farmers and ranchers adopt regenerative farming practices, which can help reverse drought conditions and GHG emissions through the reduction of soil erosion.

Tyson Foods has been heavily criticized for jumping on cultural trends as a marketing ploy, including the alleged “greenwashing” marketing scheme of “climate smart beef.” Tyson has also touted diversity, equity, and inclusion programs. A report by the Fair Agriculture Council in May described examples of child labor, price fixing, wage theft, and worker abuse, as well as “debt servitude” of the ranchers who contract with Tyson.