Tyson Shuts Beef Plants and Names a New CEO as Cattle Costs Bite

Tyson Foods is consolidating its beef operations. The company said it will close facilities in Joslin, Illinois, and Eagle Mountain, Utah, pursue a sale of its Pasco, Washington plant, and concentrate beef processing around three central U.S. sites. The moves follow an August 3 warning that losses in the beef segment would widen further.

Tyson now forecasts an adjusted operating loss of $500 million to $650 million in its fiscal 2026 beef business, up from a prior range of $350 million to $500 million. The driver is a historically tight cattle herd, which has kept livestock costs elevated and squeezed processing margins across the industry regardless of retail beef prices.

The company also announced that Jeff Schomburger will become president and chief executive officer effective October 4, 2026. The leadership change arrives as investors weigh whether capacity reductions can restore beef profitability, or whether the segment remains a drag until the cattle cycle turns. Tyson is a position in the Dyatome Capital portfolio alongside other food and staples names including Cal-Maine and Kroger.