Tyson Foods to close beef plants in Illinois and Utah
Tyson expects the changes to create annual savings of between US$100 million and US$150 million, according to analysts at Stephens Inc.
USA – Tyson Foods plans to close two beef facilities in Illinois and Utah, a move that could affect more than 3,000 workers as the company responds to a severe cattle shortage.
The company announced the closures on Thursday, August 13, saying it would stop operations at its beef plant in Joslin, Illinois, and its case-ready facility in Eagle Mountain, Utah.
The Joslin plant employs about 2,500 people, while Tyson had projected that its Eagle Mountain facility would eventually support between 800 and 1,200 jobs, though the number of positions to be eliminated there was not immediately clear.
Tyson opened the Eagle Mountain facility after investing US$300 million in 2019, initially planning for about 800 employees, and later increasing its workforce as the site reached full operating capacity.
The company said it will concentrate its beef production at three facilities in Dakota City, Nebraska, Holcomb, Kansas, and Amarillo, Texas, where it believes there is sufficient capacity to handle future growth.
Tyson will transfer production from the Illinois and Utah facilities to other sites and is also seeking a buyer for its beef plant in Pasco, Washington, as part of the restructuring.
The company added that operations at its Amarillo facility will eventually return to a second shift as cattle supplies improve, allowing it to maintain a similar volume of cattle processing with fewer facilities.
Tyson responds to cattle shortage
The closures come as the US cattle industry faces one of its most severe supply shortages in decades, increasing pressure on beef processors and contributing to heavy losses in Tyson’s beef business.
Tyson expects its beef division to record losses of up to US$650 million in fiscal 2026, highlighting the financial pressure behind the changes to its processing network.
Analysts at Little Rock-based Stephens Inc. estimate that the restructuring could reduce Tyson’s annual costs by between US$100 million and US$150 million.
The planned closure of the Joslin facility has also drawn criticism from Illinois lawmakers, with US Senators Dick Durbin and Tammy Duckworth, along with US Representative Eric Sorensen, issuing a statement after Tyson announced the decision.
The company said the changes are intended to reduce the number of facilities it operates while shifting production to sites better positioned to process cattle more efficiently, as supplies remain tight.
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