Headquartered in Springdale, Arkansas, Tyson Foods is undertaking a comprehensive overhaul of its beef network as it seeks to strengthen long-term competitiveness. The restructuring will result in approximately 3,200 job losses.
The company plans to concentrate its beef production around three “strategically located” sites in the central United States: Dakota City, Nebraska; Holcomb, Kansas; and Amarillo, Texas.
Tyson said the changes would establish “a more competitive footprint” as the US faces one of its most serious cattle supply shortages on record. The move reflects wider food manufacturing trends, including the drive to improve asset utilisation, increase capacity flexibility and adopt more efficient food processing technology.
Operations will cease at the company’s beef plant in Joslin, Illinois, and at its case-ready facility in Eagle Mountain, Utah. Production from both locations will move to facilities considered better positioned geographically and able to support future expansion.
The closures are expected to affect around 3,200 employees across the two plants.
Tyson’s European operations remain centred on its processing facility in Ashford, Kent. The group also operates a corporate headquarters in Amsterdam and a further office in London.
In its latest third-quarter financial update, Tyson Foods reported sales of US$13.87 billion, representing a 0.6% increase compared with the same period last year.
The impact of the US cattle shortage was evident in a 2.8% year-on-year reduction in volume. Despite that decline, adjusted operating income rose 8.3% to US$547 million, while the adjusted operating margin improved by 30 basis points to 3.9%.
The changes come as food and beverage industry trends continue to reshape supply chains, food distribution trends evolve and food and drink consumer trends place greater pressure on manufacturers to balance cost, availability and product value. Tyson’s multi-protein model also reflects ongoing food and drink industry innovation, while wider issues involving food and drink sustainability, food and drink regulations, food and drink packaging and food and drink marketing continue to influence strategic decisions across the sector.
Tyson Foods president and CEO Donnie King said: “We delivered strong third quarter results, fuelled by continued strength in our Chicken and Prepared Foods segments, with seven consecutive quarters of growth in Chicken and continued market share gains by our iconic brands.
“These results reflect the power of our differentiated multi-protein portfolio, strong customer partnerships and focus on operational excellence. We remain confident in our ability to deliver long-term growth and create value for shareholders through disciplined execution of our branded food products strategy.”
