Rep. Troy Downing, R-Mont., joined “Morning with Maria” to discuss the economic fallout from the government shutdown, record beef prices and the president’s $2,000 relief plan amid growing concerns about inflation and rising debt.
tyson foods The company announced Friday that it will close its major beef plant in Nebraska in January due to declining U.S. cattle supplies.
The meat processing giant plans to close its Lexington, Nebraska, plant, which employs about 3,200 people. The company also announced that it would temporarily scale back its operations. beef factory Amarillo, Texas, will move to a single shift at full capacity, impacting approximately 1,700 employees.
These changes are expected to take effect around January 20, and the company said it will also increase production at other facilities to meet customer demand.
“Tyson Foods recognizes that these decisions impact our team members and the communities in which we operate. The company is committed to supporting our team members through this transition, including by helping them apply for open positions at other facilities and by providing relocation benefits,” Tyson Foods said in a statement.
Beef stocks nationwide fall to lowest level in 70 years, beef prices hit record high
Tyson Foods will close its beef plant in Lexington, Nebraska, as cattle inventories dwindle. (Dan Brouillette/Bloomberg via Getty Images/Getty Images)
The company added that the changes will ensure that Tyson Foods “continues to provide high-quality, affordable and nutritious protein for generations to come.”
The Lexington facility can process about 5,000 cattle per day, about 5% of total U.S. slaughter, but it is already operating below capacity, Matt Wiegand, a commodity broker at Futures One in Nebraska, said in a Reuters report.
beef price Prices have soared this year as cattle inventories have fallen to their lowest levels in 70 years, pushing up prices for consumers.
Beef prices near record highs, but Americans aren’t cutting prices
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| TSN | Tyson Foods Co., Ltd. | 57.20 | +3.52 |
+6.55% |
Cattle ranchers reduce their herds for the following reasons: Drought affecting major ranching areas In recent years, some have slowly begun to rebuild. It takes at least two years to raise a full-grown cow.
The U.S. Bureau of Labor Statistics reported in its Consumer Price Index (CPI) for September that beef and veal prices rose 14.7% from the same month last year. Ground beef prices rose 12.9% last year, while beef roast prices rose 18.4% and beef steak prices rose 16.6% during this period.
those numbers are far off exceeded overall inflationfood prices were up 3.1% year-on-year as of September;
Cattle stocks have fallen to their lowest levels in 70 years as drought affects major ranching areas. (Melissa Phillip/Houston Chronicle/Getty Images/Getty Images)
Tyson’s beef business had an adjusted loss of $426 million in the 12 months ended Sept. 27, and a loss of $291 million over the past year. The meat processor predicted the sector would incur losses of $400 million to $600 million in fiscal year 2026.
Those losses occur despite strong demand from consumersthose who are anticipating rising prices to buy beef.
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Americans will spend more than $40 billion on fresh beef in 2024, accounting for more than half of all fresh meat sales, according to data from Beef Research, a contractor of the National Cattle and Beef Association.
Reuters contributed to this report.
