Photo by Abbie Lankitus
Tyson Foods plans to restart a second shift at its Amarillo, Texas, beef plant through a new partnership with a group of cattle producers.
The company announced the agreement Monday with Allied Beef, a group of ranchers and feeders based in Texas, Oklahoma, New Mexico, and other states. Tyson says the partnership is intended to create a more economically sustainable model across the beef supply chain. The move comes as meatpackers face the tightest U.S. cattle supplies in 75 years.
Higher livestock costs have outpaced gains from rising beef prices, squeezing packer margins. Tyson has closed facilities and laid off thousands of workers amid the supply shortage.
One industry analyst says working directly with ranchers could give Tyson better visibility into cattle supplies, improve scheduling, and increase plant utilization. The partnership comes as USDA has resumed imports of cattle from Mexico following last year’s suspension over New World screwworm concerns.
NAFB news service
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