3200 Jobs Lost in a Single Shift (Image Credits: Unsplash)
Lexington, Nebraska – A Tyson Foods beef plant shuttered its doors last November, thrusting 3,200 workers into uncertainty while grocery store beef prices continued their steep ascent.
3200 Jobs Lost in a Single Shift
Workers gathered in the lunchroom at the end of their shift on November 21, 2025, only to learn their positions had vanished. Constancio Perales, a 64-year-old employee with nearly three decades at the facility, expressed deep dismay. He had spent 25 years trimming bones from chuck steaks. The sudden announcement left many in tears amid the gravel parking lot.
The plant employed a significant portion of Lexington’s roughly 10,600 residents. Tyson cited efforts to optimize its network for long-term success. Yet the company’s profits had risen 6.5% the prior year. Critics questioned the timing amid booming consumer demand.
The Big Four’s Stranglehold on the Market
Tyson, JBS, Cargill, and National Beef together process 85% of U.S. beef. Their influence shapes prices from ranch to retail. Federal Reserve data revealed steak prices jumped from $7.65 per pound in January 2020 to $12.51 by December 2025 – a 63% increase. General inflation over that span totaled about 25%.
Ground beef followed a similar trajectory. In the first year of the second Trump administration, steak prices rose 15%, outpacing overall consumer inflation of 2.2%. Packers reported strong earnings, including JBS Beef North America’s record $7.2 billion in third-quarter 2025 revenue. Ranchers and buyers struggled with thin margins.
Years of Lawsuits Allege Collusion
Ranchers and feedlot owners filed a 2019 class action suit accusing the packers of price-fixing and manipulation. They claimed coordinated plant closures created artificial scarcity, depressing cattle prices while inflating beef costs. From 2013 to 2014, five plants shut down amid drought-driven shortages.
Lawsuits from buyers like Kroger, Aldi, Target, McDonald’s, Sysco, and Sodexo echoed these charges. McDonald’s alleged the processors acted as a single enterprise overpowering even its vast network. Packers denied wrongdoing, attributing actions to market forces. During COVID-19, all four reduced output despite uneven plant closures, doubling premium cut prices while cattle payments fell 30%.
Trump’s Shifting Stance on Enforcement
President Trump directed the Justice Department in November 2025 to probe meatpackers for driving up beef prices. His administration later formed task forces with the FTC to examine antitrust violations, especially by foreign-influenced firms. Earlier, investigations had stalled or closed.
JBS, via subsidiary Pilgrim’s Pride, donated heavily to Trump’s inauguration. The administration paused Foreign Corrupt Practices Act enforcement and allowed JBS stock listings. Packers faced past settlements, like Tyson’s $55 million to consumers and $87 million to grocers. Independent candidate Dan Osborn labeled the Lexington closure a profit-maximizing tactic.
- Plant closures synchronized across competitors, even post-Tyson fire in 2019.
- Cattle prices plummeted from $170 per head in 2015 to under $100 by 2019.
- Buyers and ranchers filed suits claiming widened “meat margins.”
- COVID reductions matched despite operational disparities.
- Recent Tyson losses cited, yet overall revenues soared.
Key Takeaways
- The Big Four control 85% of beef processing, enabling alleged coordination.
- Steak prices rose 63% since 2020, far exceeding inflation.
- Lexington’s economy faces $3.3 billion annual hit from plant closure.
Families like Perales’ now face home value drops and uncertain futures in a town reliant on the plant. Packers promise investments, but ranchers push for smaller processors. Will renewed probes restore balance? Share your thoughts in the comments.
