OMAHA, Neb. (AP) — Tyson Foods’ decision to shut down a beef plant that employs nearly a third of Lexington's residents could devastate the small city and hurt ranchers nationwide. The Lexington plant, which has the capacity to process about 5,000 cattle a day, employs around 3,200 people in the community of 11,000. Tyson also plans to cut shifts at a plant in Amarillo, Texas, reducing national beef processing capacity by 7-9%.
Although immediate grocery prices might remain stable because cattle being prepared for slaughter will still be processed, rising beef prices are anticipated in the long run unless ranchers increase cattle production, which remains unlikely given current economic pressures.
Clay Patton, of the Lexington Chamber of Commerce, called Tyson’s announcement a gut punch to the community, which had relied heavily on the plant since its opening in 1990. The closure will affect local businesses and housing investments. Despite the uncertain future, Patton remains hopeful the community will recover. Elmer Armijo from the First United Methodist Church noted the anxiety among locals, emphasizing the community's dependence on Tyson.
Cattle prices are already falling as ranchers worry about losing a significant buyer and facing increased competition from Brazilian beef imports. This trend, coupled with a lack of confidence in the cattle market, discourages ranchers from expanding their herds.
Economist Ernie Goss pointed out challenges in making the old Lexington plant competitive. With Tyson expected to lose over $600 million this year in its beef production sector, the industry is likely to continue facing serious challenges ahead.
Although immediate grocery prices might remain stable because cattle being prepared for slaughter will still be processed, rising beef prices are anticipated in the long run unless ranchers increase cattle production, which remains unlikely given current economic pressures.
Clay Patton, of the Lexington Chamber of Commerce, called Tyson’s announcement a gut punch to the community, which had relied heavily on the plant since its opening in 1990. The closure will affect local businesses and housing investments. Despite the uncertain future, Patton remains hopeful the community will recover. Elmer Armijo from the First United Methodist Church noted the anxiety among locals, emphasizing the community's dependence on Tyson.
Cattle prices are already falling as ranchers worry about losing a significant buyer and facing increased competition from Brazilian beef imports. This trend, coupled with a lack of confidence in the cattle market, discourages ranchers from expanding their herds.
Economist Ernie Goss pointed out challenges in making the old Lexington plant competitive. With Tyson expected to lose over $600 million this year in its beef production sector, the industry is likely to continue facing serious challenges ahead.
