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Released December 01, 2025 | SUGAR LAND
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Written by Eric Funderburk for Industrial Info Resources (Sugar Land Texas)
Subscribers to Industrial Info's Global Market Intelligence (GMI) Plant Database can click here for the related plant profiles.
A report from Texas A&M University notes that the U.S. cattle herd hit a 73-year low in January 2024 at 28.2 million head. This had increased to 28.7 million by July 2025, according to a U.S. Department of Agriculture (USDA) report, but prices still continue to increase due to low supply and high demand. U.S. consumers have felt the pinch as beef prices have escalated dramatically over the past year. The USDA's most recent Food Price Outlook for 2025 and 2026 notes that beef and veal prices were up 13.9% from August 2024 to August 2025, rising 2.7% from July to August 2025 alone.
And a month later, Smith's state is now losing a major beef plant, which with the capacity to process up to 6,000 head of cattle a day, was also a significant player in the beef supply chain for the entire country. Tyson has said it will increase production at other facilities to help meet demand.
Industrial Info is tracking several other potential beef-processing projects in Nebraska, which after Texas ranks second in the amount of cattle on feed, coming in at about 2.75 million head, or 19% of the U.S. herd, according to National Beef Wire. Most of these other projects are for smaller, specialist shops and have been deemed by Industrial Info as having a low probability of moving forward as planned. One exception to this is upgrades to the centrifuge, auger machines and other equipment at a plant in Grand Island belonging to JBS (Sao Paulo, Brazil), which along with Tyson, Cargill (Wayzata, Minnesota) and National Beef (Kansas City, Missouri) is considered one of the "Big Four" beef packers, accounting for about 85% of U.S. beef processing market share.
Now rebranded as Empirical Foods (Dakota Dunes, South Dakota), the trimmed down company is wrapping up construction on a new Kansas plant and is also considering building another plant in Amarillo. Tyson's reduction from two shifts to one at its Amarillo plant could perhaps cause a pause in Empirical's plans to construct an entirely new facility in the area for the near future, as might the USDA's November 21 Cattle on Feed report, which reported that year-to-date cattle placements on Texas feedlots as of November 1 were 338,500 head, compared with 396,000 head in the comparable period of 2024, a 14.5% reduction.
Cattle placements to feedlots in Kansas, where Empirical is putting the finishing touches on a 40 million-pound per-year processing plant, haven't fared much better this year. This could put a damper on a planned expansion for the plant, which would double annual capacity to 80 million tons. Empirical's quest to gain market share in a highly consolidated U.S. beef sector that doesn't expect to see significant changes in growth patterns for at least another couple of years could prove difficult and financially burdensome if attempted too soon. Subscribers can click here to view reports on Empirical's Amarillo and Kansas project plans.
Key Takeaways
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Summary
Tyson has announced that it will close a major beef-processing plant in Nebraska and reduce shifts at another plant in Amarillo, Texas. The company cited low U.S. cattle supplies as its reason.Tyson Announcements
Residents of Lexington, Nebraska, population 10,000, were subject to bad news on the Friday before Thanksgiving when Tyson Foods Incorporated (Springdale, Arkansas) announced that it would close its local beef-processing facility, which employs 3,200 people. Workers at a Tyson beef plant in Amarillo, Texas, were greeted with slightly less drastic news as the company will be reducing the plant's operations to a single shift, affecting some 1,700 employees. The changes are expected to be implemented by January 20.Subscribers to Industrial Info's Global Market Intelligence (GMI) Plant Database can click here for the related plant profiles.
Low U.S. Cattle Supplies
The company pointed to low supplies of cattle as the prime reason for the reductions, which have been caused by drought in areas across the Midwest and Texas that have dried out pasture land and driven up feed up prices.A report from Texas A&M University notes that the U.S. cattle herd hit a 73-year low in January 2024 at 28.2 million head. This had increased to 28.7 million by July 2025, according to a U.S. Department of Agriculture (USDA) report, but prices still continue to increase due to low supply and high demand. U.S. consumers have felt the pinch as beef prices have escalated dramatically over the past year. The USDA's most recent Food Price Outlook for 2025 and 2026 notes that beef and veal prices were up 13.9% from August 2024 to August 2025, rising 2.7% from July to August 2025 alone.
Increased Argentina Imports
In an attempt to lower beef prices, President Donald Trump announced plans in late October to quadruple the amount of low-tariff Argentine beef allowed into the U.S. from 20,000 metric tons per year to 80,000. The policy took effect early last month, earning the ire of U.S. cattle ranchers and legislators from cattle-producing states, including Nebraska Representative Adrian Smith (R), who stated: "Our agriculture industry has been hit by historic setbacks in recent years, and policy and statements which unduly influence and undermine the domestic cattle market threaten our domestic food security and are not helpful."And a month later, Smith's state is now losing a major beef plant, which with the capacity to process up to 6,000 head of cattle a day, was also a significant player in the beef supply chain for the entire country. Tyson has said it will increase production at other facilities to help meet demand.
Plans for U.S. Beef Plants
Tyson's announcements affect not just the processing company and its employees but other potential projects in Nebraska and the Amarillo area. Reigle Cattle Company (Madison, Nebraska) is considering an expansion of its 14,000-head feedlot in Madison, about a three-hour truck drive from the closing Tyson plant. The project is meant to substantially increase the lot's capacity by 11,000 head, entailing construction of a new lagoon digestor and holding pens. While construction was tentatively expected to begin next year, the closure of a major regional processing plant may cause Reigle to reconsider the necessity, timing and scope of the expansion. Subscribers can click here to learn more about the project.Industrial Info is tracking several other potential beef-processing projects in Nebraska, which after Texas ranks second in the amount of cattle on feed, coming in at about 2.75 million head, or 19% of the U.S. herd, according to National Beef Wire. Most of these other projects are for smaller, specialist shops and have been deemed by Industrial Info as having a low probability of moving forward as planned. One exception to this is upgrades to the centrifuge, auger machines and other equipment at a plant in Grand Island belonging to JBS (Sao Paulo, Brazil), which along with Tyson, Cargill (Wayzata, Minnesota) and National Beef (Kansas City, Missouri) is considered one of the "Big Four" beef packers, accounting for about 85% of U.S. beef processing market share.
Empirical Foods in Texas & Kansas
A former beef heavyweight, now rebranded after scathing press coverage and the subsequent loss of major clients that included McDonald's, Burger King, Taco Bell and major grocery chains is seeking to regain market share, although its timing may leave something to desired. The former Beef Products Incorporated was also a major supplier to the U.S. school lunch program, but a series of scathing reports in the New York Times and on ABC News regarding the company's safety measures prompted Beef Products to close major processing plants in Texas, Kansas and Iowa in May 2012 after losing major clients.Now rebranded as Empirical Foods (Dakota Dunes, South Dakota), the trimmed down company is wrapping up construction on a new Kansas plant and is also considering building another plant in Amarillo. Tyson's reduction from two shifts to one at its Amarillo plant could perhaps cause a pause in Empirical's plans to construct an entirely new facility in the area for the near future, as might the USDA's November 21 Cattle on Feed report, which reported that year-to-date cattle placements on Texas feedlots as of November 1 were 338,500 head, compared with 396,000 head in the comparable period of 2024, a 14.5% reduction.
Cattle placements to feedlots in Kansas, where Empirical is putting the finishing touches on a 40 million-pound per-year processing plant, haven't fared much better this year. This could put a damper on a planned expansion for the plant, which would double annual capacity to 80 million tons. Empirical's quest to gain market share in a highly consolidated U.S. beef sector that doesn't expect to see significant changes in growth patterns for at least another couple of years could prove difficult and financially burdensome if attempted too soon. Subscribers can click here to view reports on Empirical's Amarillo and Kansas project plans.
Key Takeaways
- Tyson is closing a beef-processing plant in Nebraska and cutting shifts at a Texas plant.
- The company cited low cattle supplies as its reason for the changes.
- U.S. beef herds reached 73-year lows in 2024, and there has been minimal recovery since then.
- Tyson's announcements could have an effect on other potential projects at feedlots and processing facilities.
- 3,200 workers affected by Lexington, Nebraska, plant closure
- 1,700 workers affected by Amarillo shift reduction
- 9,100 head a day: approximate current throughput of both plants
- 13.9%: increase in average U.S. beef and veal prices between August 2024 and August 2025
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
