Tyson Foods has announced plans to permanently shut down its large beef processing facility in Lexington, Nebraska, marking one of the most significant plant closures in the U.S. meat industry in recent years. The company said the decision stems from a long-running shortage of cattle across the central Plains, which has made full-scale operations increasingly difficult.
The Lexington site, one of the region’s biggest employers, will halt production in the coming months. More than 1700 workers will be affected by the shutdown. Tyson stated that employees will have the opportunity to transfer to other company facilities, while those choosing not to relocate will be eligible for severance pay.
According to the company, the cattle supply crunch is part of a broader, multi-year contraction in the national herd. Drought conditions, rising feed costs, and shifting ranching economics have reduced the number of animals available for processing. As a result, the Lexington plant has been operating far below capacity, placing financial pressure on Tyson’s beef division.
The company emphasized that the closure is part of a wider plan to streamline operations and strengthen long-term efficiency. Livestock previously destined for Lexington will now be redirected to Tyson’s other processing plants across the region.
Local leaders and economic observers expect the shutdown to have major ripple effects throughout the region and state. The facility has been an essential economic pillar for decades, supporting families, suppliers, and nearby businesses. Analysts also note that the loss of a plant of this size reduces overall U.S. beef processing capacity at a time when nationwide inventories remain tight.
Although Tyson has not announced an exact closing date, the company confirmed the facility will wind down operations permanently once transition plans for employees and suppliers are finalized.
