Second largest meat producer and marketer is struggling and closing factories

Tyson Foods closes largest pork plant due to coronavirus

Image: El Nariz / shutterstock.com

Mohsina Dodhiya16th August 202316th August 2023Food, News

Tyson Foods has shut down four chicken plants. Other meat giants such as JBS and Cargill have shut down facilities as well.

Tyson Foods is closing four chicken factories due to declining demand

The closures of the world’s second-largest producer of beef, pork, and chicken will affect plants in Arkansas, Indiana, and Missouri.

The move is a result of falling company profits in recent months due to a number of factors, including rising prices, concerns about animal welfare, and the growing popularity of plant-based alternatives.

As per Reuters, Tyson shutting down four of its facilities accounts for 10% of its chicken slaughtering capacity.

In an interview, the CFO of Tyson said: “These moves are difficult certainly,” however, “For the long term of Tyson, this is a move that should allow us to be better, more efficient and serve our customers better.”

The recent announcement of closing four facilities is an addition to Tyson’s growing problems. Tyson’s shares have fallen nearly 50% in the last 12 months. It plunged by 16%, a three-year low, back in May.

The meat giant also laid off about 15% of senior leadership roles and 10% of corporate roles after posting a loss of $97 million in the three months prior to April 1, 2023.

Tyson Foods share price drop (2022/2023)

Tyson and animal cruelty

Tyson has been accused of animal cruelty on multiple occasions. Farms associated with the meat business have faced numerous allegations of animal mistreatment.

In 2016, undercover videos revealed employees at several locations stomping on, kicking, and suffocating chickens. In May of the current year, it was reported that Tyson severed its relationship with a farm after an inquiry by Animal Outlook discovered that birds were deprived of food and water.

Changing food landscape

Tyson is not the only meat producer that is struggling. Other companies, such as JBS and Cargill, have also announced plant closures in recent months indicating a sign of the changing landscape of the meat industry.

In addition, the growing popularity of plant-based alternatives as well as the growing awareness of the environmental, ethical, and health costs of meat production, has encouraged many people to ditch animal flesh.

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