SALEM, Ohio — Tyson Foods, the second-largest meat and poultry processor in the world, will shut down its beef processing plant in Joslin, Illinois, as part of a major restructuring of its beef business, a move that union leaders and cattle producers say will hit workers and the already-shaky regional cattle industry hard.
In an Aug, 13 news release, Arkansas‑based Tyson said it will concentrate its beef operations around three large plants in Dakota City, Nebraska, Holcomb, Kansas and Amarillo, Texas, in an effort to “create a more competitive footprint” during what it called one of the most severe cattle shortages the country has ever seen. Tight cattle supplies are expected to last, the company said, pointing to recent U.S. Department of Agriculture data that show ranchers aren’t keeping many young female cattle to rebuild their herds. It’s a sign the overall cattle herd isn’t likely to grow soon, and that packers will have to keep cutting back on how many animals they can process.
Scaling back
The ripple effects are already a concern in cattle country. In a statement, the Ohio Cattlemen’s Association said it is “deeply disappointed” by the Joslin closure and what it could mean for producers who have relied on that plant for marketing.
OCA President Lindsey Hall referenced an Aug. 10 announcement by JBS USA to ultimately scale back operations at its Souderton, Pennsylvania plant this month after announcing in June it would close it outright. Instead, the company will now focus on preparing meat at Souderton to be case-ready. While the move preserves 400 jobs, a Pennsylvania Department of Labor and Industry WARN notice listed 1485 positions as affected by the closure of the beef processing facility; the latest news release makes no mention of the more than 1,000 jobs at risk.
Taken together, the recent changes, Hall said, heighten her concern around the closure of the Joslin plant.
“Together, these two facilities represent approximately 5,000 head of daily cattle harvest capacity,” Hall said. “They have served as important market outlets for cattle producers in Ohio and throughout the Eastern Corn Belt, while also providing jobs and supporting the economic vitality of their surrounding communities.”
She added the loss of that regional capacity could mean “longer transportation distances, increased costs and greater uncertainty for producers” at a time when the industry should be focused on rebuilding the nation’s cattle herd.
“The U.S. cattle herd is at historically low levels, leaving the industry with more processing capacity than current cattle supplies can support,” Hall said. “At the same time, rebuilding the cattle herd requires producers to have confidence that competitive and accessible markets will be there when they make the long-term investments necessary to grow their operations.”
OCA urged Tyson to work with producers, employees and industry partners “to identify alternative marketing opportunities and to fully explore options that could preserve this important processing capacity, including the potential sale of the facility to a qualified buyer.”
“Once that processing capacity is lost, it can be difficult to replace,” Hall warned, adding that Ohio producers are “resilient and committed to the future of our industry,” but need market access and competition to “grow and prosper.”
“Extremely disappointed”
As part of the reshuffling, Tyson is also pursuing a sale of its Pasco, Washington, beef facility, though it remains open for now. The closure includes a case‑ready plant in Eagle Mountain, Utah, that will also be shut down. Capacity from those plants will be moved to other existing facilities. The company plans to add a second shift back at its Amarillo facility “as cattle become available.”
In the release, Tyson said the changes are designed to keep overall cattle harvest levels roughly the same, but spread across a more efficient and modern network. The company acknowledged the impact on workers and communities and said it will help affected employees apply for jobs at other company locations.
But the news will devastate them, said the United Food and Commercial Workers International Union and UFCW Local 1546, which represents more than 2,000 workers at the Joslin beef plant. The organization blasted the decision as well as the way it was communicated.
“The closure of the Tyson Foods beef plant in Joslin, Illinois, this week follows a troubling downward trend in the meatpacking industry and greatly impacts the livelihoods of our union brothers and sisters who worked for this company, like a tornado ripping through the community,” said UFCW Local 1546 President and UFCW International Vice President Robert O’Toole in a statement.
He added that the union has had a “long‑standing and proud” relationship with Tyson but was “extremely disappointed” not to receive advance notice of the closure.
“If given the opportunity, we could have sat down and found an economic solution to keep this plant operating, but sadly our voice was silenced,” he said. The local is now focused on working with lawmakers, community groups and other union affiliates “to provide the necessary resources to ease them through this unfortunate transition.”
