USDA/FPAC photos by Preston Keres

More beef processing capacity is on the way for the cattle supply chain. Tyson Foods has already started restoring some second-shift work at its Amarillo, Texas, beef plant and expects the full second shift to be running by summer 2027. The company is lining up a long-term supply agreement with Allied Beef Company, a consortium of U.S. cattle producers. When the Amarillo plant cut its second shift in November 2025, it lost about 1,700 jobs and more than 2,500 head of daily processing capacity.

A full second shift would add hook space and steady packer demand for fed cattle across the supply chain, though analysts say hiring enough workers is now the biggest hurdle.

In the official press release, Tyson CEO Wes Morris commented “We’re proud to announce our intent to partner with Allied Beef and the American ranchers they represent while continuing to invest in facilities like Amarillo. Together, we plan to strengthen our beef production, creating value for American ranchers, and helping ensure a reliable supply of high-quality beef for customers and consumers.”

Read the full report in Drovers.