Tyson cuts 3,200 jobs and closes 3 beef plants as U.S. cattle herds shrink to their lowest level since the 1950s

The U.S. cattle industry is experiencing significant challenges as cattle herds have reached their lowest levels since the 1950s. This decline in herd size, coupled with high beef prices, has put financial strain on meatpacking firms. In response to this downturn, Tyson Foods announced the closure of three beef plants, resulting in the loss of 3,200 jobs.

These closures include plants in Joslin, Illinois, Pasco, Washington, and Eagle Pass, Utah. Tyson cited the USDA's data on cattle herds to justify the downsizing, as supply constraints are expected to persist. The Trump administration has limited options to encourage herd growth, as high beef prices have created political concerns.

The U.S. Agriculture Department has established a $500 million lifeline for smaller meatpackers to maintain processing volume. Additionally, lawmakers are proposing measures to expand grazing land, such as the RANCH Act introduced by Senators Mike Rounds and Amy Klobuchar. The cattle industry also faces the threat of the New World Screwworm, a flesh-eating parasite that could devastate livestock if it spreads.