12 Nov Tyson Foods to Fully Reopen Second Shift at Amarillo Beef Plant by Summer 2027

Tyson Foods plans to bring a full second shift back to its Amarillo beef plant by summer 2027, linked to a proposed partnership with a rancher group called Allied Beef Company, according to a company news release.

Tyson said Monday that some second-shift work there has already resumed. The company did not say how many workers it expects to hire, stating only that the move “will increase production and create significant additional employment opportunities.”

The Springdale, Arkansas-based company described the Allied Beef arrangement as an intent, not a finished agreement. Tyson said it would connect the company directly with ranchers and create “a more economically sustainable model across the supply chain.” Reuters reported that Allied Beef’s members are ranchers and feeders based in Texas, Oklahoma, New Mexico and elsewhere.

“We’re proud to announce our intent to partner with Allied Beef and the American ranchers they represent while continuing to invest in facilities like Amarillo,” Tyson Chief Operating Officer Wes Morris said in the release.

Amarillo went down to one shift in January, and about 1,700 workers were laid off, the Amarillo Tribune reported. In August, Tyson said the second shift would return but offered no timeline. Citing the Amarillo Chamber of Commerce, the Tribune reported that Tyson had roughly 4,300 employees in the city in February 2022, ranking it third among local employers.

The announcement comes after a rough year for Tyson’s beef business. Reuters reported that cattle supplies in the U.S. are at their lowest point in 75 years, driving up livestock costs faster than meatpackers have gained from higher steak and hamburger prices. Tyson shut facilities and cut thousands of jobs earlier this year, and in September it lowered its full-year profit outlook for the second time in a month, Reuters reported. Fourth-quarter earnings are due Nov. 16.

Pooran Sharma, an analyst with Stephens, told Reuters the partnership probably signals that Mexican cattle are coming back into the U.S. market. Those imports once made up between 3% and 5% of U.S. cattle slaughter. The U.S. Department of Agriculture allowed them to resume after stopping shipments last year over the New World screwworm. Sharma said working directly with ranchers could give Tyson a clearer picture of how many cattle are available, along with better scheduling and plant use.