Washington, USA – Tyson Foods, one of the world’s largest meat producers, announced the closure of its beef processing plant in Lexton, Nebraska.
The facility employs approximately 3,200 people, amid a decline
in the US livestock supply to its lowest level in nearly 75 years.
The company said in a statement that the decision to close was
a result of a shortage of cows ready for slaughter.
This has led to a significant increase in the prices that companies pay to acquire livestock.
Amid expectations that this crisis will last for at least two years.
The size of the national herd has declined.
The meat processing industry in the United States is facing increasing pressure due to the declining size of the national herd.
This is a result of drought, poor reproduction rates, and high feed costs.
The Lexton plant is one of Tyson Foods’ key beef processing facilities.
It contributes to supplying the American market
with large quantities of steak and burger slices.
However, current circumstances have prompted the company to reassess its operations.
This comes at a time when competing companies
such as JBS USA are facing a similar fate.
All of them are forced to pay high prices for livestock due to limited supply.
High meat prices
The factory closure is expected
to affect the labor market in the region.
The factory is a major source of income
for thousands of families in Nebraska.
The company has not yet clarified its plans
for hiring or transferring workers to other locations.
However, further details are likely to be released in the coming weeks.
Analysts suggest that continued declining cattle supplies could lead to higher meat prices.
This is for consumers in the United States over the next two years.
This will continue until the national herd recovers and production returns to its normal levels.
