The Cattle Shortage Is Now Losing Americans Their Jobs
Supply constraints have pushed beef prices to record highs, but consumers are not the only ones struggling.
The American beef industry is facing a severe shortage, causing prices to soar and impacting workers in the meatpacking sector. Tyson Foods, the largest of America’s Big Four meatpackers, announced closures of several facilities due to the historic cattle shortage. The company closed plants in Illinois and Utah and is seeking buyers for a facility in Washington.
Over 3,000 employees have been laid off in Illinois alone, with Tyson Foods providing insufficient notice to affected workers. The American cattle herd has reached a 75-year low, with droughts, rising input costs, and weakened incentives for heifer retention contributing to the issue. Tighter supplies have driven beef prices higher, with Americans now paying over $13 per pound for beef steaks.
Rising retail prices have not translated into a boom for cattle ranchers, as they continue to struggle with rising production costs. The meatpacking industry is dominated by four companies, which has led to accusations of price manipulation and price fixing, including by the Trump administration. The recent layoffs indicate that meatpackers are grappling with tighter margins and higher costs amid persistent cattle shortages.
Experts predict that the shortage will persist and lead to more closures and shifts in the U.S. beef-processing sector.
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