Cargill confirms beef plant renovation
Cargill completes automation upgrades at Fort Morgan facility in Colorado.
USA – Cargill has finished a major renovation of its Fort Morgan, Colorado, beef processing plant as part of its ongoing Factory of the Future program.
The company announced in June 2025 that it would invest nearly US$90 million in automation and technology upgrades at the facility.
One of the new technologies, CarVe, uses computer vision to measure red meat yield in real time and allows managers to provide immediate feedback to workers on cutting techniques.
Cargill’s spokesperson said the company is operating all of its primary North American beef plants and has no plans to shut any facilities.
The announcement comes as Tyson Foods revealed it would close its Lexington, Nebraska, beef plant, which employs around 2,500 workers, and reduce its Amarillo, Texas, plant to a single full-capacity shift.
Tyson Foods stated it would increase production at other facilities to meet customer demand and adjust volumes across its network.
Cargill highlighted that its investments aim to maintain current operations while supporting long-term production capacity.
The U.S. beef industry faces pressure from declining cattle numbers, which are at their lowest levels in decades due to prolonged droughts affecting pastures and increasing feed costs.
Additional restrictions on Mexican cattle imports this year, introduced to prevent the spread of a flesh-eating parasite, have further tightened domestic supply.
Rising livestock prices have forced meatpackers to pay more for cattle, contributing to record-high beef prices and drawing attention from policymakers, including former President Donald Trump.
Cargill operates eight primary beef processing plants in North America, producing ground beef and other retail cuts, and emphasized that none of these facilities are scheduled for closure.
The recent developments at Tyson Foods have highlighted broader industry challenges, including supply constraints and elevated production costs, putting pressure on U.S. beef prices.
Analysts note that investments in automation and technology, such as those at Cargill’s Fort Morgan plant, are part of broader efforts to improve efficiency amid these market pressures.
While Tyson reduces operations at some facilities, Cargill’s completed upgrades signal a continued focus on maintaining output and adapting to ongoing supply constraints.
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