Tyson Foods(US:TSN) 智通财经网·2025-11-22 04:46Core Insights - Tyson Foods is closing its beef processing plant in Lexington, Nebraska, to adjust the scale of its beef business and lay the foundation for long-term success [1] - The company is shifting its Amarillo, Texas plant to single-shift full production and increasing output at other facilities to optimize production capacity across its network [1] - The beef sector is facing significant challenges due to rising feed costs, drought, and supply chain issues, leading to a historic shortage of cattle in the U.S. and soaring beef prices [1] Financial Impact - The CFO forecasts that the adjustments in the beef department will result in losses between $400 million and $600 million, with annual cattle costs increasing by $2 billion as of September [2] - Beef prices have surged by 45% since mid-2024, although they have slightly decreased from last year's peak, remaining nearly double the levels seen during the pandemic [1] Market Conditions - The beef supply is at a historical low due to drought, potential cattle herd rebuilding, and issues related to the New World screw-worm fly in Mexico, creating headwinds for the market [1] - The Trump administration is attempting to alleviate consumer pressure by proposing the removal of a 40% tariff on Brazilian beef imports and investigating potential price manipulation in the meatpacking industry [2]