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
Reducing mental stress and focusing on controllable actions can improve decision-making in high-pressure environments, according to Hollywood actor and former Calif Gov. Arnold Schwarzenegger.
January 09, 2026 03:59 PM
·
Tight fed supplies shift margin risk to packers, strengthening cattle price leverage but increasing volatility.
January 09, 2026 03:36 PM
·
Expanding chicken supplies are likely to keep prices under pressure in early 2026 despite steady demand growth.
January 09, 2026 11:00 AM
·
Prompt removal of Christmas trees and careful handling of decorations reduce winter fire risk during an already high-demand season for emergency services.
January 09, 2026 08:00 AM
·
Reduced winter placements indicate tighter fed cattle supplies and greater leverage during peak-demand months.
January 09, 2026 06:00 AM
·
AFBF Economist Faith Parum provides analysis and perspective on the Farmer Bridge Assistance Program—what commodity growers should know and potential remedies for producers facing crop losses where that aid falls short.
January 08, 2026 02:45 PM
·
