Tyson Foods, a giant in the American meatpacking industry, sent shockwaves through rural Nebraska and the broader beef market this week with its announcement to shutter its major beef processing plant in Lexington. The decision, revealed on November 21, 2025, comes at a time when the United States is grappling with sky-high beef prices and the lowest cattle inventory seen in decades. The Lexington facility, which employs more than 3,000 workers in a town of just 10,000, is expected to close its doors in January 2026, according to reporting from The New York Times.
In tandem with the Lexington closure, Tyson Foods also announced that its Amarillo, Texas, beef facility would pare back to a single shift per day. The company explained that these moves are "designed to right-size its beef business and position it for long-term success." In its official statement, Tyson reassured customers and investors alike, saying, "With these changes, Tyson Foods is ensuring that it will continue to deliver high-quality, affordable and nutritious protein for generations to come." The company also pledged to help affected employees apply for positions at other Tyson facilities and to provide relocation benefits where possible.
The ripple effects of this decision stretch well beyond the city limits of Lexington. On a recent earnings call, Tyson—a member of the so-called "big four" meatpackers in the U.S.—projected operating losses between $400 million and $600 million on its beef operations in the coming fiscal year. The company said it would boost production at its remaining beef facilities to meet ongoing customer demand, but the stark reality is clear: the beef industry is in the throes of a historic upheaval.
What’s driving this turmoil? For one, beef prices have soared to unprecedented levels. According to Fox Business, as of November 19 and 20, 2025, the price of beef for American consumers is roughly five times what it was during the same period a year prior. During a Thanksgiving shopping segment, a Fox host cautioned viewers, "Remember, if you do want to do another protein like beef, the price is still up. It's about five times the price that it was last year. So just keep that in mind. Turkey is probably your best bet. Just stick to the one."
These price hikes are not just a matter of inflation or supply chain hiccups. Experts and industry insiders point to a confluence of factors: persistent drought, years of low cattle prices that discouraged ranchers from expanding their herds, and, crucially, the smallest U.S. cattle herd size in decades. As a result, supply has tightened just as demand remains robust, sending prices higher at the grocery store and the butcher’s counter.
Policy decisions from Washington have added more fuel to the fire. President Donald Trump, who has made tariffs and trade policy a centerpiece of his economic agenda, announced on November 18, 2025, that he would loosen tariffs on Brazil—a major beef exporter to the United States—in an effort to lower consumer costs. The move, which also affects coffee, fruit, and other goods, was intended to provide some relief at the checkout line. However, as Fox Business and The Associated Press reported, the impact has been muted: beef prices remain stubbornly high, and the tariff adjustments have done little to move the needle in the short term.
In fact, the saga of tariffs and beef prices is a complex one. Earlier in the year, President Trump’s administration had imposed steep tariffs on Brazilian beef, which, according to industry analysts, contributed to reduced imports and helped drive up domestic prices. Trump’s recent decision to roll back some of those tariffs was framed as a response to mounting anxiety over inflation and a sharp decline in consumer confidence—a political calculus as much as an economic one. Yet, Brazil noted that some levies, particularly those enacted in July to punish the country for prosecuting former President Jair Bolsonaro (a Trump ally), remained in place, limiting the potential impact of the tariff rollback.
Meanwhile, the political rhetoric around beef prices has only grown more heated. Earlier in November, Trump accused foreign-owned meat packers of colluding to artificially inflate beef prices, calling on the Department of Justice to investigate alleged price fixing and manipulation. In a post on social media, he declared, "I have asked the DOJ to immediately begin an investigation into the Meat Packing Companies who are driving up the price of Beef through Illicit Collusion, Price Fixing, and Price Manipulation." He added, "We will always protect our American Ranchers, and they are being blamed for what is being done by Majority Foreign Owned Meat Packers, who artificially inflate prices, and jeopardize the security of our Nation’s food supply." Despite these claims, industry trade groups have pushed back, arguing that they are not to blame for the current market conditions, and experts say it’s unlikely that an investigation would yield lower prices at the grocery store.
The political theater has extended even to the Thanksgiving dinner table. In a November 10, 2025 interview with Fox News' Laura Ingraham, Trump claimed that Walmart’s pre-packaged holiday dinner was 25% cheaper than last year’s offering under President Biden. "That's a tremendous number," Trump said. However, as PolitiFact and NBC News pointed out, this year’s bundle included fewer items—no pecan pie, whipped topping, onions, celery, sweet potatoes, poultry seasoning, chicken broth, muffin mix, marshmallows, and one less can of mushroom soup. The $40 price tag, while $15 lower than the 2024 version, was achieved by trimming the contents rather than reflecting a true drop in food prices. When asked about the missing items, Trump replied, "Well, I haven't heard that. Who are you with? Fake news."
Retailers, for their part, sometimes use so-called "loss leaders"—selling certain items below cost to attract shoppers, then making up the difference with higher-margin goods. This, too, can distort the public’s perception of underlying price trends, as PolitiFact noted.
For the residents of Lexington, Nebraska, and workers at the Tyson plant, the economic and personal stakes are painfully real. The closure will affect nearly a third of the town’s population, a blow that will be felt in schools, local businesses, and family budgets for months—if not years—to come. Tyson’s promise to assist with job placement and relocation offers a lifeline, but for many, the loss of steady employment in a small town is a daunting prospect.
As the U.S. beef industry faces a period of profound uncertainty, consumers, workers, and policymakers alike are grappling with tough questions about food security, corporate strategy, and the real-world impact of political decisions. With high prices, shrinking herds, and shifting trade policies, America’s beef market is at a crossroads—and the road ahead looks anything but simple.
