Tyson Foods’ announcement that it will shutter its Lexington, Nebraska, beef plant has sent shockwaves through the small city, where the facility employs nearly a third of the population.
According to The Associated Press, the closure, set for January, could also ripple across the national cattle industry, reducing beef processing capacity by up to 9%.
The Lexington plant, which processes up to 5,000 head of cattle a day, employs roughly 3,200 people in a town of 11,000.
Tyson is also cutting one of two shifts at its Amarillo, Texas, plant, eliminating 1,700 jobs. Together, these moves will reduce nationwide beef processing capacity significantly.
Clay Patton, vice president of the Lexington-area Chamber of Commerce, called the announcement a “gut punch” to the Platte River Valley community.
He noted that the plant, which Tyson acquired after it opened in 1990, revitalized the town, attracting thousands of immigrants and nearly doubling the population.
“When the plant closes in January, the ripple effects will be felt throughout the community, undermining many first-generation business owners and the investment in new housing,” Patton said.
Tyson will offer affected workers the chance to relocate to other plants, but many would have to move hundreds of miles.
Pastor Elmer Armijo, who moved to Lexington last year, described the town as once economically stable with strong schools and healthcare, but now facing uncertainty.
“People are completely worried,” Armijo said. “The economy in Lexington is based in Tyson.”
Local churches are stepping in with counseling, food pantries, and gas vouchers to support residents.
The closure also threatens ranchers, as the plant is a major buyer of U.S. cattle.
Bill Bullard, president of the Ranchers-Cattlemen Action Legal Fund, warned that increasing imports from Brazil, which already accounted for 24% of beef imports this year, could depress prices and discourage U.S. producers from expanding their herds.
Economists note that Tyson has struggled with beef losses totaling $720 million over the past two years and expects another $600 million in losses this year. Creighton University economist Ernie Goss said the Lexington plant “just wasn’t competitive in today’s environment in terms of output per worker.”
While grocery store prices may remain steady in the short term, long-term impacts on beef prices and the viability of U.S. ranching could be significant, leaving Lexington and the broader industry bracing for a challenging future.
