Tyson Meals (TSN) is closing a beef manufacturing plant in Nebraska and paring operations at one other because the outlook for the business stays challenged amid tighter cattle provide and hovering costs.
The meat-processing large introduced on Friday plans to shut one beef facility in Lexington, Neb., and also will decrease manufacturing at its beef plant in Amarillo, Texas. To fulfill demand, it plans to extend volumes at its different beef services.
The corporate stated earlier this month it expects losses in its beef enterprise to be as much as $600 million for its present fiscal 12 months. The choice could influence as much as 5,000 employees throughout the 2 services.
“The corporate is dedicated to supporting our staff members by way of this transition, together with serving to them apply for open positions at different services and offering relocation advantages,” the corporate stated.
This choice comes after President Trump introduced plans to chop tariffs on greater than 200 meals, together with beef, bananas, espresso, and orange juice, final Friday.
Learn extra: The most recent information and updates on Trump’s tariffs
Earlier this month, the administration additionally launched an investigation into the nation’s largest meatpacking firms, alleging these firms had been “artificially inflating costs on the expense of farmers, ranchers, and dealing households.”
In its newest quarter, Tyson reported beef costs jumped 17% as volumes fell 8.4%. For its fiscal 12 months ended Sept. 27, Tyson reported a $426 million loss for its beef enterprise.
The corporate warned that it deliberate to lower roughly 2% of its home manufacturing in 2026.
“Cattle provides are at file lows resulting from drought, potential herd rebuilding, and the influence of New World screwworm in Mexico,” CEO Donnie King informed traders on the corporate’s newest earnings name. “These elements created market headwinds through the quarter.”
This comes a bit of over two years after the corporate closed 4 rooster processing vegetation.
Brooke DiPalma is a reporter for Yahoo Finance. Comply with her on Twitter at @BrookeDiPalma or e-mail her at [email protected].
Click on right here for all the newest retail inventory information and occasions to raised inform your investing technique
