Tyson to Cut 400 Jobs, Citing Shrinking Cattle Supply

Tyson Foods Inc. said it will permanently cease beef production at its Denison, Iowa, location, affecting up to 400 workers, the latest producer to cut into its beef operations amid declining cattle herds.

"The cattle supply is tight and there's an excess of beef production capacity in the region," said Steve Stouffer, president of Tyson Fresh Meats. "We believe the move to cease beef operations at Denison will put the rest of our beef business in a better position for future success."

The company has struggled recently, reporting weaker-than-expected earnings in its most recent quarter. It has been hurt by a 3.9% decline in sales volume as it struggles to sell higher-priced beef in domestic and export markets.

The company said the 400 workers affected by the ending of beef production at that location will have the option to apply for jobs at other Tyson locations. The company is also offering financial incentives to workers who qualify for openings at its Lincoln, Neb., beef plant.

Last year, Cargill Inc., one of the biggest beef processors in the U.S., said it was closing a Wisconsin beef plant that employs 600 workers due to tight cattle supplies.

The closure comes after years of drought in major cattle-raising regions of the U.S. have forced ranchers to cull their herds.

Write to Neil Haggerty at [e-mail]

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