US meat processor Tyson Foods has announced that it is to end operations at two of its beef plants and put a third one up for sale.

The company said it will concentrate its beef business around three facilities in Nebraska, Kansas and Texas.

It added that the decision was made “amidst one of the most historic cattle shortages the country has ever experienced”.

This is not the first round of beef processing cuts at Tyson this year.

In January, the company said it was closing a plant in Lexington, Nebraska, which could process up to 5,000 cattle daily.

This announcement of the latest closures cited recent US Department of Agriculture data, which included continued evidence of limited heifer retention – indicating that the cattle shortage in the US is likely to persist.

Profit forecast

On Friday 7 August, Tyson had lowered its profit forecast for the year, warning that losses in its beef business would widen, as tight supplies kept cattle prices elevated.

The processor said it expects to lose between $500m and $650m (€433m to €564m) this year alone on processing beef.

Most recent data from Bord Bia shows that US cattle prices are running around €1.20/kg ahead of equivalent Irish prices.