Tyson Foods Restores Production Shift at Amarillo Beef Plant

Tyson Foods is restoring a second production shift at its beef processing plant in Amarillo, Texas, with the objective of returning to full operation by summer 2027. This expansion follows a period of significant contraction, including the closure of a facility in Lexington, Nebraska, and the layoff of 1,700 workers at the Amarillo site in January.

The company is consolidating its beef operations around plants in Holcomb, Kansas, and Dakota City, Nebraska, while establishing a long-term partnership with Allied Beef Company. This consortium of American ranchers aims to create a more economically sustainable supply chain model to combat ongoing volatility.

Financial performance in the beef segment has declined, with operating losses reported every quarter since early 2024. The company projects an adjusted operating loss between $500 million and $650 million for fiscal 2026. CEO Donnie King attributed these losses to persistent supply constraints and limited herd expansion among ranchers.