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Tyson Challenges USDA Claim Over Who Can Buy Its Shuttered U.S. Beef Plants

Tyson Foods says its closed beef plants can be sold to foreign or domestic buyers, contradicting Agriculture Secretary Brooke Rollins' account of a commitment.

Marco Díaz Collins
Journalist focused on covering current affairs in the United States. Reports on news, trends, and key developments with a broad perspective, analyzing their impact on society and the broader information landscape.

Tyson Foods disputed Agriculture Secretary Brooke Rollins' claim on Sept. 1 that the meatpacker had committed to selling its recently shuttered U.S. beef plants only to American-owned companies or producer groups. Speaking at the Farm Progress Show in Boone, Iowa, Rollins said Tyson CEO Donnie King had given her a verbal commitment regarding potential buyers. Tyson responded that its position had not changed and the facilities could be sold to any buyer, whether foreign or domestic. The disagreement matters as Washington focuses on meatpacking concentration, foreign ownership and record beef prices.

Rollins said she had spoken with Tyson several times and that King told her the company would ensure the facilities, if transferred, went to an American-owned company or U.S. producers. Tyson publicly rejected that interpretation following her remarks. The dispute comes after the company announced plans to close or sell three U.S. beef plants and packaging operations as losses deepen in its beef business. Meatpackers have faced pressure from exceptionally high cattle costs even as retail beef prices have climbed, creating a difficult margin environment across the processing segment of the supply chain.

Beef Plant Ownership Moves Into the Political Spotlight

The disagreement is particularly significant because U.S. beef processing is highly concentrated. Tyson, Cargill, JBS USA and National Beef account for roughly 85% of the slaughter of U.S. grain-fed cattle, according to the report. Foreign ownership is also part of the debate: JBS USA belongs to Brazil-based JBS, while Brazil's Marfrig holds a controlling interest in National Beef. The Trump administration has raised concerns about foreign control of processing capacity while simultaneously allowing additional imported beef into the country to address tight supplies and elevated consumer prices.

The issue arrives as beef prices have reached record levels amid historically tight U.S. cattle supplies, turning the sector into an increasingly sensitive economic and political issue ahead of the November midterm elections. Trump recently authorized up to 300,000 metric tons of foreign beef to enter the country at reduced tariff rates for 90 days, a move criticized by ranchers concerned about cattle prices. USDA, meanwhile, is promoting loans for smaller processors and other measures aimed at rebuilding domestic beef production and processing capacity.

For cattle producers, the Tyson-USDA dispute adds another layer of uncertainty to an already complicated market. Who ultimately controls major processing assets can influence slaughter capacity, competition for cattle and producers' marketing alternatives. With Washington pushing for greater domestic food production while scrutinizing industry consolidation, any sale of Tyson's facilities could become a test of how far the administration can influence the structure of the U.S. beef supply chain.

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