Logo of Cargill is displayed at the company’s booth at the 8th China International Import Expo (CIIE) in Shanghai, China, November 6, 2025.
Beef processing companies are facing difficulties as U.S. cattle numbers have dropped to their lowest levels in decades. Years of drought have reduced available pasture and raised feed costs, leading ranchers to reduce herd sizes. This year, supplies have become even tighter following a temporary pause in cattle imports from Mexico.
The reduced availability of cattle has increased procurement costs for processors and contributed to higher beef prices for consumers.
"We don't have intention to close any primary beef processing plants right now," Cargill told Reuters in an email. "In fact we are investing in them."
Cargill operates eight primary beef slaughter plants across North America and is one of the country's leading producers of ground beef.
Last Friday, Tyson Foods announced it will permanently close its beef plant in Lexington, Nebraska, and shift its Amarillo, Texas, beef facility to a single full-capacity production shift.
Together, Cargill, Tyson Foods, JBS USA, and National Beef Packing Company process approximately 85% of the grain-fed cattle in the United States that are used for steaks, roasts, and other consumer cuts.
Earlier this year, in June, Cargill said it would invest around $90 million to upgrade automation and boost efficiency at its beef processing plant in Fort Morgan, Colorado.
