LUBBOCK, TX – Tyson Foods is shrinking its beef processing network as historically tight cattle supplies continue pressuring packer margins. The company will close beef operations at Joslin, Illinois, and its Eagle Mountain, Utah, case-ready plant while pursuing a sale of its Pasco, Washington, beef facility.
Tyson will center beef production around Dakota City, Nebraska; Holcomb, Kansas; and Amarillo, Texas. Joslin employs more than 2,000 workers and can process about 3,000 cattle daily, while Pasco has capacity near 2,000 head per day.
The restructuring follows mounting financial pressure. Tyson expects its beef segment to lose $500 million to $650 million in fiscal 2026 after cattle costs surged and quarterly beef volume fell nearly 16%.
USDA counted 28.5 million beef cows on July 1, down 1% from last year, while the 2026 calf crop was estimated 2% smaller. Those figures suggest cattle supplies will remain constrained.
Tyson plans to restore a second shift at Amarillo as cattle become available. For producers, fewer major packing locations could shift regional cattle flows and make plant capacity, freight and local competition increasingly important marketing considerations.
Farm-Level Takeaway: Tyson’s restructuring underscores how the cattle shortage is reshaping packing capacity and could alter regional competition for cattle.