00:00Beef hits $9 a pound after Tyson beef plant shutdown wipes out 5% of U.S. beef supply.
00:08Live cattle futures crashed to a limit down on November 21, 2025,
00:12after Tyson Foods announced the permanent closure of its Lexington, Nebraska beef plant,
00:17which processed 5,000 cattle daily and officially shut down on January 20, 2026.
00:23Tyson will cut 3,200 direct jobs,
00:26but economists project more than 7,000 total job losses statewide
00:31as ripple effects hit restaurants, retailers, health care, schools, and services
00:35dependent on plant workers' income.
00:38U.S. cattle inventories fell to 86.7 million head, the smallest since 1951.
00:45Years of drought, high feed costs, and unprofitable pricing forced herd liquidation,
00:50creating a severe national beef supply shortage.
00:52The Lexington facility accounted for about 5% of national beef slaughter capacity.
00:58Its closure marks the first major permanent shutdown by a Big Four packer
01:02during the current cattle shortage.
01:04Producers now absorb roughly $20 more per head hauling cattle farther.
01:09Longer transport causes 6 to 9% weight loss,
01:12cutting up to 90 pounds of value from a 1,500-pound steer.
01:16Lexington, Nebraska, a city with a population of 11,000, is facing economic collapse.
01:23Leaders called the closure a gut punch as immigrant families prepare to leave,
01:27threatening the multicultural identity built since the plant opened in 1990.
01:32Thousands losing employer health insurance at once could overwhelm rural health care.
01:36Local hospital leaders have warned that clinics and emergency rooms will be strained
01:40as newly uninsured residents seek care.
01:44After the limit-down crash, cattle prices recovered in 2026.
01:48Northern live cattle trade near $360 per hundred weight,
01:52with southern prices around $232, slightly below 2025 peaks,
01:57though analysts warn of long-term uncertainty from lost processing capacity.
02:02Industry forecasts show meaningful herd rebuilding unlikely before 2027,
02:06with balanced markets pushed to 2028 or later.
02:09High interest rates, elevated input costs, and memories of past price crashes
02:14discourage ranchers from expanding breeding herds.
02:18Analysts warn that more plant closures may follow.
02:21With herd recovery unlikely before 2027,
02:24producers will face higher costs, fewer buyers,
02:27and lasting volatility as beef processing continues to consolidate.
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