The closure of one of Tyson’s major beef plants in Nebraska is sending shockwaves throughout the entire U.S. beef industry.
“I’m in shock, along with everybody else,” says David Jobman, a cattle producer who lives near Lexington, Nebraska, where the plant is located.
That plant handles around 5,000 head a day and accounts for about 5 percent of the average daily total U.S. beef slaughter.
When Tyson announced they were shutting down that particular plant on November 21, live cattle futures opened limit down.
Jobman said he thought it was a joke at first, but quickly learned that Tyson’s announcement was no laughing matter.
“I’m sure the decision was not made lightly, but that’s going to have a huge impact, which is going to ripple through communities here.”
Jobman says the closure will have a negative impact on thousands of beef producers who operate near that Tyson plant in central Nebraska.
“(It’s a) pretty good area that was bringing fattened cattle to Lexington for slaughter, and now you’re going to have to find other markets, and added transportation costs are certainly going to be a factor in that.”
The announcement comes just weeks after President Trump said he was directing the Department of Justice to investigate the “Big Four” U.S. meat packers—including Tyson. Those companies dominate 85 percent of the U.S. beef processing industry.
Tyson says it is laying off 3,200 workers when the plant closes its doors on January 20.
Source: Steve White, KRVN/Rural Radio Network, Lexington, Nebraska
