Tyson Fresh Meats closed their Denison, Iowa beef fabricating plant as of Friday "due to a continued lack of available cattle." The closing, which affects 400 jobs, will "better align its overall production capacity with current cattle supplies."
According to a news release from the Tyson Fresh Meats headquarters in Dakota Dunes, South Dakota, "This was a very difficult decision because it affects the lives of our people, their families and a community that has supported this plant for more than 50 years,” said Steve Stouffer, president of Tyson Fresh Meats. “However, the realities of the beef business have changed and we must continue to change with it to remain successful.
“The cattle supply is tight and there’s an excess of beef production capacity in the region,” he said. “We believe the move to cease beef operations at Denison will put the rest of our beef business in a better position for future success.”
The by-product rendering system at the Denison plant will continue operations. It will process by-products from other Tyson locations and will employ approximately 20 people.
The 400 workers affected by the end of beef production at Denison are being given an opportunity to apply for jobs at other Tyson locations. In fact, the company is offering financial incentives to hourly workers who qualify for production openings at the company’s Lexington, Nebraska, beef plant.
On Friday, Cattle traders pointed to the Tyson announcement as one of the reasons that cattle futures tumbled on Friday- initially dropping more than two dollars a hundredweight but coming back and finishing a dollar lower at $146.85, basis the October delivery.
The Denison beef plant has a long, rich history in the meat industry. It opened in 1961 as the first plant operated by Iowa Beef Packers (IBP), a start-up company that grew to become one of the world’s leading beef processors. IBP was acquired by Tyson Foods in 2001 and renamed Tyson Fresh Meats.
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