Tyson Foods announced plans to close its beef processing plant in Lexington, Nebraska, as well as convert its beef facility in Amarillo into a “single, full-capacity shift.”

The announcement comes after the meatpacker reportedly suffered major financial losses and as the U.S. cattle herd dropped to a nearly 75-year low.

As of Jan. 1, the national cattle herd was at 86.7 million head, the smallest since 1951. Several years of drought, herd liquidation and record-high feed costs have reduced the U.S. cattle herd.

Reports show Tyson’s beef business suffered a combined $1.5 billion in operating losses over the last two fiscal years. The major meatpacker is projecting an additional $400 million to $600 million in losses for the 2026 fiscal year.

Nebraska plant
The beef processing plant in Lexington, Nebraska, will permanently close in early 2026. Tyson has not announced a final closure date.

The facility has reportedly been operating below capacity in recent months.

The plant can process an estimated 5,000 cattle per day. Tyson said production will be increased at other plants to maintain supply.

“To meet customer demand, production will be increased at other company beef facilities, optimizing volumes across our network,” Tyson said in a statement. “With these changes, Tyson Foods is ensuring that it will continue to deliver high-quality, affordable and nutritious protein for generations to come.”

Amarillo plant
As part of the same restructuring effort, the company said it will eliminate the second shift (B-shift) at the Amarillo plant and convert the facility to a single, full capacity shift around Jan. 20, 2026.

Tyson’s Amarillo plant can harvest about 6,000 cattle per day, according to industry estimates.

Tyson said in a statement on its website that the restructuring aims to “right-size its beef business and position it for long-term success” by “optimizing volumes across our network.”