Agricultural Economics, Department of
Center for Agricultural Profitability
Understanding the Tyson Lexington Plant Closure: What It Means for Cattle Producers
Date of this Version
12-12-2025
Document Type
Article
Citation
Dennis, E.J., Smith, T.J., “Understanding the Tyson Lexington Plant Closure: What It Means for Cattle Producers.” CAP Series 25-1201, Center for Agricultural Profitability, University of Nebraska-Lincoln, Dec. 12, 2025. DOI: 10.32873/unl.dc.cap083.
Abstract
On Nov. 21, Tyson Foods announced it would permanently close its beef processing facility in Lexington, Nebraska, effective Jan. 20. The company also announced it would convert its Amarillo, Texas, facility to a single full-capacity shift. The Lexington plant employs roughly 3,200 people and can slaughter almost 5,000 cattle per day approximately 4.8% of total daily U.S. beef slaughter. This marks the first time one of the "Big Four" meatpacking companies has permanently closed a major plant during the current cattle supply crunch.
Markets have reacted quickly. On Nov. 24, live cattle futures fell the $7.25 daily limit, and feeder cattle futures dropped the $9.25 limit across the board. Cash fed cattle trade the week prior came in at $222-224 per hundredweight in the South (down $4-5) and $218 in the North (down $7). The CME Feeder Cattle Index stood at $339.72 on November 20. Nebraska feeder cattle prices were $10-20 lower for 700-800 lb. steers and $20-40 lower for 500-600 lbs. steers last week.
The purpose of this article is to explain what the Lexington plant’s closure could potentially mean for cattle producers in Nebraska and beyond, how it compares to previous plant disruptions in the last 5-7 years, what economic research tells us about potential price impacts of such a closure.