Tyson Foods has planned a permanent closure of its beef processing plant in Lexington, Nebraska. The closure is set for January 20, 2026, and reflects long-term structural pressures in the cattle industry rather than a short-term disruption, industry experts say. Tyson announced the shutdown in November and attributed it to a historically low U.S. cattle herd and sustained financial losses in its beef business, leading the company to reallocate capacity across its network and convert other facilities to different shifts. The Lexington plant, which processes nearly 5,000 head of cattle daily and employs roughly 3,200 people, represents about 5% of U.S. daily beef slaughter capacity.

Livestock market analysts warn that the closure will ripple through cattle markets and regional economies, with short-term volatility in cattle prices and increased transportation costs for ranchers who must ship cattle to more distant plants, raising shrinkage and logistical costs. Economists note that the permanent loss of capacity could have more lasting effects on cattle pricing dynamics than past temporary plant disruptions, with producers in central Nebraska and beyond likely feeling the impacts most acutely as markets and supply chains adjust. In this kind of uncertain pricing environment, Livestock Risk Protection (LRP) can play a key role by helping ranchers manage downside price risk tied to market volatility.

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