Where’s the beef?
According to the Associated Press, Tyson Foods’ decision to close a beef plant in Nebraska and cut one of two shifts at another in Texas could see beef processing capacity drop 7-9% nationwide.
The Lexington, Nebraska, plant employs around 3,200 employees and can slaughter roughly 5,000 cattle per day.
This announcement comes with the news that its plant in Amarillo, Texas, will eliminate 1,700 jobs and one of two shifts.
While it may not result in a price hike for beef for now, it could in the long term. Droughts, tariffs and plant closures are all contributing to higher prices.
Ranchers have little incentive to raise more cattle as the price to do so has risen.
Tyson is expected to lose more than $600 million on beef production this year. This comes after a loss of $720 million in beef over the past two years.
