Tyson Foods Lexington plant closure projected to cost Nebraska US$3.28B
Tyson also plans to repurpose former turkey plant in Arkansas for chicken processing
USA – The University of Nebraska-Lincoln released an analysis showing that the permanent closure of Tyson Foods’ Lexington, Nebraska beef processing plant could result in a statewide economic loss of US$3.28 billion annually.
Tyson Foods announced on November 21, 2025, that it would close its Lexington facility and reduce operations at its Amarillo, Texas plant to a single full-capacity shift.
The Lexington plant, which employs about 3,200 people, has the capacity to slaughter 5,000 cattle per day, representing roughly 4.8 percent of the total daily US beef slaughter.
According to UNL, the shutdown could lead to annual labor income losses of US$530.43 million, affecting 7,003 jobs, including 3,212 positions directly at the plant and additional roles in supporting industries.
UNL noted that the impact would be most severe in Dawson County and surrounding communities where the majority of the plant’s employees reside.
The report also highlighted the broader ripple effect on local businesses, with some already experiencing job losses, such as 139 sanitation workers at Fortrex whose contracts with Tyson were terminated.
State and local tax revenues are expected to decline sharply, with Nebraska’s personal income tax projected to drop by US$23.2 million annually, state sales tax revenues falling by US$10.16 million, and Dawson County local sales tax revenues decreasing by US$2.77 million per year.
In related developments, Tyson Foods recently purchased the former Cargill turkey processing plant in Washington County, Arkansas, which shut down in August 2025, with county land records showing the property sold for US$23 million.
During a November 17, 2025 city council meeting in Springdale, Tyson’s poultry president, Nathan McKay, outlined plans to convert the former turkey facility into a chicken processing and portioning plant rather than resuming turkey slaughter.
McKay explained that the company will replicate operations already in place at other regional plants and that modifications will require equipment upgrades over the next three years, with an estimated investment between US$90 million and US$130 million.
Initially, Tyson expects a small workforce to handle renovation and maintenance, but staffing could expand to 100 to 200 employees by the second year of operations.
The timing of the Lexington closure, set for January 20, 2026, coincides with these strategic investments in Arkansas, reflecting a shift in Tyson’s operational focus while leaving significant economic consequences for Nebraska.
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