Tyson Foods is restructuring its beef processing network as tight cattle supplies continue to challenge the packing industry.

The company announced Aug. 13 that it will close its case-ready facility in Eagle Mountain, Utah, and its beef processing facility in Joslin, Illinois. Tyson also plans to sell its beef facility in Pasco, Washington. The closure comes only five years after the $285 million meat-packaging plant in Eagle Mountain began operation. The closure will also result in the loss of more than 700 jobs. Upon announcement of the plant back in 2019, the State of Utah approved Tyson for up to $5.26 million in post-performance state tax credits, plus a $300,000 infrastructure grant.

The facility in Eagle Mountain was not a slaughtering facility, but rather large cuts of meat processed elsewhere would arrive at Eagle Mountain to be sliced, ground, packaged, weighed and labeled into consumer-ready products bound for grocery-store meat cases, according to Utah Money Watch.

Tyson will shift capacity from the closing facilities to other locations. The company plans to center its beef business around plants in Dakota City, Nebraska; Holcomb, Kansas; and Amarillo.

According to reporting from the Salt Lake Tribune and Utah Money Watch, Tyson ultimately received only 25–50% of the state tax credit it was eligible to earn before announcing the closure. It is unclear who will take over operations of the highly advanced meat facility in Eagle Mountain.

The restructuring also includes plans to restore a second shift at the Amarillo beef plant as cattle become available. Tyson reduced the Amarillo facility to one shift in January when it closed its Lexington, Nebraska, beef plant.

“Collectively, these changes will allow the company to maintain a similar level of cattle harvesting across a more efficient and modern network,” Tyson said in a statement.


Historically Tight Cattle Supplies

Tyson’s changes come as the beef industry continues to contend with historically tight cattle supplies.

USDA estimated 94.2 million cattle and calves were in the United States as of July 1, up slightly from last year. But the beef cow herd fell 1% to 28.5 million head. The 2026 calf crop is estimated at 32.5 million head, down 2% from 2025.

Those supplies have pressured beef packer margins. Tyson recently projected an adjusted operating loss of $500 million to $650 million for its beef segment in fiscal year 2026.

However, according to the American Farm Bureau's economic team, the U.S. cattle herd shows signs of stabilization. As of July 2026, total cattle inventory increased slightly for the first time since 2018, but the beef cow herd fell to 28.5 million head, a record low for the July report, indicating herd rebuilding remains limited.

Some relief could also come from the return of cattle imports from Mexico.

“It is hard to see something like this happen, because the processing sector has traditionally been a bottleneck here in Utah. The drought continues to put pressure on farmers and ranchers to sell off their cattle rather than keeping replacements and allowing the national herd to grow. But there are signs that it is stabilizing somewhat. This is a multi-year cycle though, so it won’t be fixed overnight."

“There is also optimism with some efforts recently announced by Governor Cox and the Utah Department of Agriculture & Food with its Food Security Grants. These aim at helping grow small and mid-sized food production and processing businesses throughout Utah, and expanding options for Utah food to get to Utah consumers,” Gibbons added.


Impacts of New World Screwworm

USDA plans to reopen the Douglas, Arizona, port of entry to livestock trade Aug. 24. It will be the first southern port to reopen under a phased plan following restrictions related to New World screwworm.

The reopening is contingent on Mexico meeting requirements in a joint action plan to control the pest. Cattle entering through the port will undergo a full USDA inspection for signs of New World screwworm.

USDA will evaluate the Douglas reopening before considering the Santa Teresa and Columbus ports in New Mexico for live cattle, bison and horse imports. The timeline could change if New World screwworm risks increase or Mexico does not meet required milestones.

Mexican cattle have historically been an important source of feeder cattle for the U.S. beef sector. Before border restrictions began, imports averaged more than 1 million head annually. The return of those cattle could add to feeder cattle supplies, but the impact on beef production will take time because imported cattle must first be grown and finished before slaughter.


Contributors to this article included Julie Tomascik of Texas Farm Bureau, Matt Hargreaves of Utah Farm Bureau, and Davis Politis of Utah Money Watch.