Tyson Foods intends to establish a long-term partnership with Allied Beef Company, a consortium of American ranchers, in a move designed to strengthen the domestic cattle supply chain and support the future of Tyson’s beef production.
In anticipation of the partnership, Tyson is moving forward with plans to fully reopen the second production shift at its Amarillo, Texas, beef facility. The company already has begun restoring select second-shift operations and expects the shift to be fully operational by summer 2027, increasing production and adding jobs.
The restoration reverses a cut made when Amarillo went to a single shift in late 2025, affecting about 1,700 workers, and follows Tyson’s August restructuring of its beef business around three anchor plants: Dakota City, Nebraska; Holcomb, Kansas; and Amarillo. At the time, the company closed its Joslin, Illinois, plant and Eagle Mountain, Utah, case-ready facility and moved to sell its Pasco, Washington, plant, describing the cattle shortage as among the most historic the country has experienced and saying it would restore Amarillo’s second shift as cattle became available.
Dependent on partnerships
“The future of our beef business depends on strong partnerships across the supply chain,” said Wes Morris, COO of Tyson Foods. “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. Together, we plan to strengthen our beef production, creating value for American ranchers, and helping ensure a reliable supply of high-quality beef for customers and consumers.”
The companies said the direct packer-rancher structure is meant to create a more economically sustainable model throughout the supply chain. Allied Beef said the planned partnership represents a meaningful opportunity to create long-term value for American ranchers while strengthening connections in the cattle supply chain, with new opportunities for ranchers and continued growth of beef production.
Springdale, Arkansas-based Tyson Foods, founded in 1935, holds a portfolio including the Tyson, Jimmy Dean, Hillshire Farm, Ball Park and Wright brands, with approximately 133,000 team members.
Related: Tyson Foods To Close 2 Beef Plants, Sell Third Amid Cattle Shortage