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
Roger McEowen with the Washburn School of Law reviews key highlights from the House Agriculture Committee’s latest farm bill proposal.
The Action Aims to Lower Food Costs for Consumers and Strengthen the Supply Chain
Slightly higher sales amid shrinking acreage and inventories point to tighter supplies supporting catfish prices.
Cold-driven spikes in gas prices can quickly raise fertilizer and energy costs.
The USDA’s Farm Service Agency (FSA) has issued final Emergency Livestock Relief Program (ELRP) payments totaling more than $1.89 billion.
Specialty Crops Acreage Reporting Deadline for 2025 is March 13

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:

Long-term demand uncertainty is reshaping specialty crop strategies as producers adapt to fewer, older consumers.
Seasonal boxed beef softness does not change the tight-supply outlook — leverage remains closer to the farm gate heading into 2026.
Trade uncertainty—especially regarding soybeans—continues to weigh on future outlooks, even as farm finances and land values remain resilient.
Strong export demand supports feed grain prices, but drought risk and seasonal patterns favor disciplined early-year marketing.
Corn export strength remains a key demand anchor, while China’s continued involvement in soybeans and sorghum bears close watching for price direction.
Preserving equity through active risk management remains critical in a volatile, supply-driven market.
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.