Tyson Foods’ closure of two facilities, and plan sell its beef plant near Pasco, has left cattle industry reeling.
Cattle farmers and feeders alike are expecting to feel the ripples as one of the beef industry’s giants continues downsizing.
Jack Fields, Executive Director of the Washington Cattle Feeders Association, is glad the Pasco, Wash. plant wasn’t shuttered along with Tyson’s Joslin, Ill., beef facility and Eagle Mountain, Utah case-ready facility.
“I think the good news is that the plant has been put up for sale and that it’s not closed,” Fields said. “I do think that even the announcement of the sale certainly is going to create a shadow of uncertainty when you look at the markets.”
Historically, the plant has employed around 1,400 workers, many commuting from the Tri-Cities. Tyson took over ownership of the plant in 2001.
In its press release, Tyson cited the ongoing cattle shortage, which Fields says is a 75-year record low.
This is in part due to import restrictions and cases of New World screwworm in Texas and New Mexico farms, as well as droughts in grazing areas.
As a cow and calf producer in Yakima, Fields understands the pressure Tyson is feeling.
“In Tyson’s case they need to put as many cattle as they can in the front door so they can put boxes of beef effectively and economically out the back door,” Fields said.
The struggle is effecting the entire industry.
“It creates a significant challenge for anybody buying cattle at any level of the production chain,” Fields said.
The Tyson plant, in Wallula just outside Pasco, doesn’t raise their own cattle, instead buying large quantities from nearby farms and ranchers — that was highlighted with the Easterday Ranches scandal a few years ago.
Tyson produces 1-in-5 pounds of all chicken, beef and pork in the U.S., so shortages take out a major chunk of the nation’s supply.
“In basic economics, when you limit the supply, if we maintain a strong demand, the price goes up,” Fields said.
While it may be hard to predict the exact increases, Fields guarantees customers won’t be seeing price drops.
“We were short cattle before this announcement,” Fields said, “We’re still short cattle.”
From an insider perspective, if the plant doesn’t sell and is closed down, the effects would ripple beyond the Tyson employees.
“We’re thinking down the road long term,” Fields said. “As a cattle producer, as a cattle feeder, we want — we need that plant there. It needs to be open, and it needs to be running efficiently.”
Other cattle and farming associations, like the National Cattlemen’s Beef Association agree.
“Tyson Foods’ Pasco, Wash., beef processing facility is also critical for cattle producers in the Northwest, and we appreciate the company’s commitment to seek a buyer rather than pursuing an outright closure,” CEO Colin Woodall said in a news release.
For the cattle feeder industry, Fields said the best case scenario is if “somebody jumps in here, and we see an infusion of capital, and we keep that plant rolling.”
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