Beef Capacity Drops to 27m Head, Tyson Shutters Nebraska Plant
JBS warned beef capacity fell from 33m to 27m head over four years, while cattle shortages led Tyson Foods to close its Lexington, Nebraska plant and cut back Amarillo output. JBS US processed 2.3m head in 2025 versus 3.9m in 2022 and posted beef sales of $28.14bn, up 15.9%.
1. Processing Capacity Imbalance
JBS US unit noted that slaughter capacity in the US has declined from 33m head four years ago to roughly 27m head, outpacing the drop in cattle herd sizes and creating sustained excess processing capacity across the sector.
2. Tyson Facility Adjustments
Tyson Foods responded to cattle shortages by closing its Lexington, Nebraska beef plant in November and reducing output at its Amarillo, Texas facility to align processing capacity with reduced herd levels and improve utilization rates.
3. JBS US Volume and Sales
In 2025, JBS processed 2.3m head of cattle in the US, down from 3.9m in 2022, while North American beef net sales climbed 15.9% to $28.14bn on higher volumes and price increases.
4. Outlook and Labor Disruptions
Cattle supplies are projected to stay tight through 2026 and 2027, and JBS faces a strike at its Greeley, Colorado beef plant, adding labor risk to industry processing volumes.