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Beef Is Getting Pricier. Tyson Is Feeling It.

23h ago · 5 sources · earnings

Beef is in a squeeze, and Tyson is right in the middle of it.

In its second quarter, Tyson’s beef volumes fell 13.1% after the company pushed through an 11.5% price increase to offset a shrinking herd. USDA predicts domestic production will drop about 2% year over year in 2026. Tyson now expects a $350 million to $500 million operating loss in beef this year.

The company has already started cutting to match reality. It permanently closed its Lexington, Nebraska plant, one of the nation’s largest, processing about 5,000 head a day or roughly 5% of US slaughter capacity. More than 3,000 jobs were lost, with $241 million in local wages and benefits wiped out and a $530 million annual hit to statewide labor income.

At retail, the pressure is showing up on shelf. AIMS data shows meat and poultry prices rose 0.65% month on month in April. Beef climbed 1.16% in the month and 8.22% year on year. Overall meat and poultry inflation is running at 4.06%, ahead of the 3.4% reported for total food and non-alcoholic beverages.

Why it matters: higher prices are colliding with cautious shoppers. Tyson’s diversified portfolio is helping cushion the blow, but beef remains strategically important. Until cattle supplies normalize, expect more tension between price, volume and plant capacity. The steak on your plate now carries a lot more than seasoning.

Key facts

  • Tyson Foods’ beef volumes slid 13.1% after the company increased prices 11.5% to offset pressure from a shrinking herd.
  • USDA predicts domestic beef production will drop about 2% year over year in 2026, resulting in a segment operating loss of $350 million to $500 million for Tyson.
  • Tyson permanently closed its Lexington, Nebraska beef plant, which processed about 5,000 head of cattle daily, or about 5% of total US slaughter capacity.
  • The closure eliminated more than 3,000 jobs and resulted in about $241 million in lost wages and benefits locally and a $530 million annual hit to statewide labor income, according to the University of Nebraska.
  • Association of Independent Meat Suppliers data shows month-on-month meat and poultry prices increased 0.65% in April, with beef up 1.16% and year-on-year up 8.22%.
  • Overall meat and poultry inflation was 4.06% year on year, ahead of the total food and non-alcoholic beverage figure of 3.4% reported by ONS.
  • 13.1%
  • 11.5%
  • 2%
  • $350 million to $500 million
  • 5,000 head
  • 5%
  • 3,000 jobs
  • $241 million

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