Tyson Foods has announced a restructuring to its beef operations.
According to a company release, Tyson will anchor its beef business around three facilities in the central U.S.: Dakota City, Nebraska; Holcomb, Kansas; and Amarillo, Texas. The company says the move will create a more competitive footprint as the industry continues to face historically low cattle supplies.
Tyson also announced it would end operations at its Joslin, Illinois beef facility and Eagle Mountain, Utah case-ready facility and the capacity from those locations will be relocated. Tyson is also pursuing the sale of its Pasco, Washington beef facility.
Josh St. Peters, Executive Vice President of the Illinois Beef Association, says the shuddering of the Joslin facility is disappointing and creates significant challenges for hundreds of producers who have relied on the plant to market cattle. He says the loss of a major processing facility at a time when Illinois beef producers are looking to invest in their operations and play a role in rebuilding the nation’s cow herd creates additional uncertainty because it reduces market access and increases transportation and marketing costs. The closure also impacts 2,500 employees, countless local businesses, and the broader regional economy.
The company says it will increase production at its Amarillo, Texas facility as more cattle are available.
The National Cattlemen’s Beef Association says the closure of the Joslin beef processing facility will significantly impact producers, employees, and rural communities across the region. NCBA says Tyson should work closely with its longstanding customers to identify alternative marketing opportunities for cattle.
Tyson says these changes will allow for similar cattle harvesting across a more efficient and modern processing network.
EDITOR’S TAKE:
These plant closings are not likely to be well received by beef producers or Congress. We already have some indication from the article about how producers feel about such a move. Congress could very well reopen their investigation into concentration among meat processors, such as Tyson. The added shipping costs will almost certainly be noticed by consumers who are already paying record high prices for their favorite cut of beef. All-in-all, not a popular move by Tyson.
You, however, can make a popular move by creating something that will appeal to farmers/ranchers in your area. It could be as simple as inviting them to an early showing of new truck models. While they are at your dealership, invite them to sign up for one of our CAD AgPack partner sweepstakes drawings. In fact, you might want to post those sweepstakes on your website to help increase traffic online and on your showroom floor.
