What does Tyson’s shutdown of two US beef plants mean for grocery costs?

Tyson Foods, the largest meatpacking company in the United States, has announced plans to close two of its facilities in Iowa and Utah and sell a beef facility in Washington state. The closures come amid a historic cattle shortage and rising beef prices for consumers. According to agricultural economist Glynn Tonsor, the United States has always had more capacity to process beef than the available cattle, meaning the closures shouldn't have a significant impact on overall beef supply or consumer prices.

However, the closures do signal a broader trend of beef plant closures, which could lead to a long-term reduction in processing capacity and deter cattle producers from expanding in the future. While the recent price increase in beef has outpaced inflation, jumping 9% over the last year, pork and chicken prices have dropped. This demand for beef is being driven by a "general protein craze" and the higher income group maintaining a high demand despite increasing household expenses.

Experts say the higher-income earners are not affected by the higher ribeye prices, while those with fewer assets face greater strain.