Cargill Maintains Beef Plants as Tyson Cuts Capacity

Cargill’s commitment to keep plants open helps preserve competition as Tyson removes capacity amid historically tight cattle supplies.

LUBBOCK, Texas (RFD-TV) — U.S. beef processors are navigating the tightest cattle supplies in decades, but Cargill says it has no plans to close any primary beef plants even as Tyson prepares to shut Lexington, Nebraska, and scale back Amarillo.

For producers, this signals widening differences in how major packers are responding to shrinking cattle numbers, rising procurement costs, and restricted imports from Mexico due to New World Screwworm controls.

Cargill confirmed it will continue operating all eight of its North American slaughter plants and is investing in modernization, including a $90 million upgrade at its Fort Morgan, Colorado, facility. The stance contrasts sharply with Tyson’s expected 7 percent national capacity reduction, which will narrow competitive bids in parts of Nebraska, Kansas, and the Texas Panhandle.

Other packers remain stable: JBS and National Beef report no pending closures, and several regional plants built after the pandemic continue running, though some operate below intended throughput. Looking ahead, tight feeder supplies may still pressure margins across plants through 2026.

Farm-Level Takeaway: Cargill’s commitment to keep plants open helps preserve competition as Tyson removes capacity amid historically tight cattle supplies.
Tony St. James, RFD-TV Markets Specialist
Related Stories
Strong pork demand and improving beef exports outside China support protein markets despite ongoing trade barriers.
The Farm Bureau’s honor highlights the important role farm dogs play on operations across the country, serving as dependable workers and trusted companions.
Rising adoption of GLP-1 drugs may gradually reshape food demand, with potential downstream effects on protein markets and consumer purchasing patterns.
Leadership development and bipartisan engagement remain central to advancing agriculture’s priorities in 2026.
How the Public Trust Doctrine Threatens Agricultural Property Rights
Protein markets are fragmenting. Beef is supply-driven and more structurally expensive, whereas pork and poultry remain price-competitive.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

The WASDE/Crop Production combo will be the first full read on supply, demand, and yield that could move basis and hedging plans since the government shutdown more than a month ago.
A rescheduled WASDE, China’s soybean squeeze, barge bottlenecks, and premium beef demand all collide this week — with cash decisions, basis, and risk plans on the line.
China’s grain expansion model may be hitting its limit. Lower prices, high rents, and policy fatigue threaten future output — with ripple effects across global feed and oilseed markets.
America’s love for burgers depends on open markets. Without lean beef imports, prices would skyrocket, crushing demand and destabilizing the beef industry.
High milk production and soft retail demand are squeezing prices and margins — making careful feed and risk management essential through year-end.
Arizona producers are proving that desert farming and water conservation can coexist through technology, reuse, and efficiency — reinforcing both food security and environmental stewardship.
Agriculture Shows
Hosted by Scott “The Cow Guy” Shellady and RFD News Markets Specialist Tony St. James, Commodity Talk delivers expert insight into the day’s ag commodity markets just before the CME opens. Only on RFD-TV and Rural Radio SiriusXM Channel 147.
A look at the news, weather and commodities headlines that drove agriculture markets in the past week.
Everything profits from prairie. Soil, air, water — and all kinds of life! Learn how you can improve your land with prairie restoration, cover crops and prairie strips, while growing your bottom line.
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.