Tyson Foods announced plans to exit more beef processing plants as the U.S. cattle supply falls to its lowest level in 75 years. The shortage has squeezed meatpacking companies, reducing profitability and forcing operational changes. The company, one of the largest U.S. meat processors, previously closed some plants and now intends to further reduce capacity.

Cattle inventories have declined steadily since a peak in 2019, with the USDA reporting the smallest herd since 1948. This has led to higher prices for slaughter-ready cattle, squeezing packer margins. Tyson Foods' exit from additional plants could tighten beef supply further, potentially raising retail prices.

The move also signals a strategic shift towards poultry and prepared foods. Domestic cattle supplies remain constrained by years of drought, high feed costs, and herd rebuilding challenges. The U.S. beef industry faces structural changes as processors adapt to lower volumes.

Tyson's decision may reshape the supply chain, affecting producers and consumers alike.