Tyson Foods Inc. said it will permanently cease beef production
at its Denison, Iowa, location, affecting up to 400 workers, the
latest producer to cut into its beef operations amid declining
cattle herds.
"The cattle supply is tight and there's an excess of beef
production capacity in the region," said Steve Stouffer, president
of Tyson Fresh Meats. "We believe the move to cease beef operations
at Denison will put the rest of our beef business in a better
position for future success."
The company has struggled recently, reporting
weaker-than-expected earnings in its most recent quarter. It has
been hurt by a 3.9% decline in sales volume as it struggles to sell
higher-priced beef in domestic and export markets.
The company said the 400 workers affected by the ending of beef
production at that location will have the option to apply for jobs
at other Tyson locations. The company is also offering financial
incentives to workers who qualify for openings at its Lincoln,
Neb., beef plant.
Last year, Cargill Inc., one of the biggest beef processors in
the U.S., said it was closing a Wisconsin beef plant that employs
600 workers due to tight cattle supplies.
The closure comes after years of drought in major cattle-raising
regions of the U.S. have forced ranchers to cull their herds.
Write to Neil Haggerty at neil.haggerty@wsj.com
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