Huge grocery store meat supplier shuts down plant, no bankruptcy

Holiday revelers looking for a nice prime rib roast or other cut of beef at the grocery store to celebrate the season will be spending a lot more money on that meal this year as a beef shortage continues to increase consumer costs. A major part of the pricing problem is the historic drop in the ...

Dec 17, 2025 - 20:00

Huge grocery store meat supplier shuts down plant, no bankruptcy

Holiday revelers looking for a nice prime rib roast or other cut of beef at the grocery store to celebrate the season will be spending a lot more money on that meal this year as a beef shortage continues to increase consumer costs.

A major part of the pricing problem is the historic drop in the size of the U.S. cattle herd to a nearly 75-year low. The national cattle herd was 86.7 million head, as of Jan. 1, 2025, the smallest since 1951, the Texas Farm Bureau reported.

The cattle herd has declined in size from several years of drought, herd liquidation, and record-high feed costs, the bureau said.

Rising beef prices in grocery stores may not see relief anytime soon, as a cattle shortage has also forced major meat-packing companies to downsize their operations and close plants, further impacting the beef supply and prices.

Tyson Foods closes Nebraska beef plant

Tyson Foods Inc. in November revealed that it will close its beef processing plant in Lexington, Neb., in early 2026, but did not designate a definite closing date.

The Lexington facility, which has the capacity to process about 5,000 cattle a day, has reportedly been operating at below capacity in recent months. The company plans to increase capacity at other plants to maintain supply, Tyson said.

"To meet customer demand, production will be increased at other company beef facilities, optimizing volumes across our network," Tyson revealed in a statement. "With these changes, Tyson Foods is ensuring that it will continue to deliver high-quality, affordable and nutritious protein for generations to come."

Tyson eliminates Texas beef plant worker shift

Tyson won't be increasing the beef production at its Amarillo, Texas, plant as the company also said in November that it will eliminate its second shift at the plant and convert the packing plant to a single, full-capacity shift, beginning Jan. 20, 2026.

"Tyson Foods recognizes the impact these decisions have on team members and the communities where we operate," the company said in the statement. "The company is committed to supporting our team members through this transition, including helping them apply for open positions at other facilities and providing relocation benefits."

The Springdale, Arkansas, meat company's product brands include Tyson, Jimmy Dean, Hillshire Farms, Ball Park, Wright, State Fair, Aidell's, and ibp.

Tyson Foods product brands

Tyson
Jimmy Dean
Hillshire Farms
Ball Park
Wright
State Fair
Aidell's
ibp.

Swift Beef Co. is closing its Riverside, Calif., meat-packing plant in early 2026.
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Swift Beef closes meat-packing plant

And now a major competitor of Tyson Foods, JBS Foods' subsidiary Swift Beef Co. is closing its meat packing facility in Riverside, Calif., and laying off 374 employees, the Los Angeles Times reported.

Swift Beef issued 60-day Worker Adjustment and Retraining Notification notices to employees through the California Employment Development department on Dec. 4, with an expected closure by Feb. 2, 2026.

The Swift Beef Co. facility in Riverside prepares meat for sale in U.S. grocery stores but does not slaughter animals, according to a JBS spokesperson.

Swift Beef seeks to relocate workers

JBS said that it will offer affected employees opportunities at other company facilities and provide relocation support. Employees who choose not to relocate will be terminated by Feb. 2, 2026.

"JBS is committed to supporting impacted team members through this transition,” a spokes person said in a statement. “The company remains focused on delivering high-quality products and dependable service while strengthening its operational footprint to meet evolving market demands."

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