BY Rosemary

Tyson Foods said Friday it will temporarily continue preparing beef for sale at its Lexington, Nebraska, slaughterhouse, which is in the process of closing, providing a brief reprieve for a portion of the facility’s workforce as operations wind down.

The meat processor announced in November that it planned to shut the beef plant around January 20, citing tight cattle supplies that have driven up costs for U.S. beef processors. While layoffs began as scheduled, the company disclosed in a recent notice to Nebraska state officials that it will extend employment for a small share of workers to assist with shutdown-related duties.

According to the filing, about 292 employees—roughly 9% of the plant’s 3,200 workers—will remain on the payroll for periods ranging from as little as three days to as long as 185 days. Fewer than half of those employees are expected to continue working beyond the end of this month, underscoring the temporary nature of the extension.

“Limited further processing will continue at our Lexington facility during this transition period,” the company said in an emailed statement, adding that the additional time is intended to support an orderly closure of the site.

The shutdown comes as the U.S. cattle industry grapples with historically low herd levels. Persistent drought conditions across key grazing regions have dried up pastures, forcing ranchers to shrink their herds. As a result, U.S. cattle supplies have fallen to their lowest point in nearly 75 years, squeezing processors that rely on a steady flow of animals for slaughter.

Scarce cattle supplies, combined with strong consumer demand for beef, have driven prices sharply higher. Retail ground beef prices climbed to a record average of $6.69 per pound in December, a 19% increase from a year earlier, according to government data. Prices for steaks and other cuts have also continued to edge upward.

President Donald Trump said in October that his administration was working to bring down beef prices, but the upward pressure has persisted into the new year, reflecting the depth of the supply imbalance in the cattle market.

While higher beef prices can bolster revenue for major processors such as Tyson, the company has also faced rising costs, paying record prices to purchase cattle for slaughter. Those elevated input costs have weighed on margins and contributed to decisions to scale back or shutter operations where profitability has been strained.

In Nebraska, state and local officials have expressed hope that Tyson might sell the Lexington facility or repurpose it for another use to limit the economic impact on the community. Lexington, a city of about 10,000 residents, has long relied on the beef complex as a major employer. Tyson has said the plant has been in operation since 1990, making its closure a significant blow to the local economy.

For now, the limited continuation of processing offers a short-term cushion for some workers, even as the broader shutdown of the plant moves forward.