JBS NV will close its Pennsylvania beef plant and a Tennessee value-added facility, marking the latest consolidation move as meatpackers grapple with a severe U.S. cattle shortage. The Souderton plant employs over 1,700 workers and processes roughly 2,000 cattle daily, making it a major East Coast operation.

The closures reflect mounting pressure on meat processors amid historically tight cattle supplies. The U.S. cattle herd sits at a 75-year low, with ranchers culling herds due to drought and elevated feed costs. JBS CEO Wesley Batista Filho warned that worsening dryness could delay herd rebuilding, while the New World screwworm outbreak in Texas adds further uncertainty.

Other industry giants have taken similar steps. Tyson Foods and Cargill previously shuttered plants in Nebraska and Milwaukee respectively. Negative beef processing margins have persisted for 18 months despite record retail prices, drawing antitrust scrutiny from the Trump administration. JBS shares climbed as much as 1.9% on Friday following the announcement.

The company's strategy focuses on modernizing operations and shifting production to other facilities. These shutdowns signal that meatpackers are prioritizing efficiency over capacity expansion until cattle supplies recover, likely pushing profit recovery into fiscal 2028.