Tyson Foods cutting 400 jobs, closing plant in Denison

DENISON, Iowa | Jammie Lemon’s scheduled day off from work quickly turned sour Friday. Most of the cattle slaughtered at Denison have been purchased from producers who live closer to Dakota City, Nebraska – where Tyson has a beef-packing plant with 4,000 employees.

He added that the company has to adapt to the “realities of the beef business” for them to continue to be successful.

The plant, which had almost shut down three years earlier, holds historic significance.

The plant has been in operation since 1961, when it was opened by Iowa Beef Products or IBP.

Roger Preul, Denison Resident said, “My brother owns a shoe store down here and he said he had a lady in there trying on shoes and when someone came in and told them that Tyson announced they were closing, she got up and walked out and said she’s not spending any money and just got a little scared”.

The beef sector is Tyson Foods’ biggest division, accounting for 42 percent of group sales in the past year.

Shouting at an acquaintance outside the courthouse, Lemon expressed she would take any job possible.

In a news release, Tyson said the 400 workers would have an opportunity to apply for jobs at other Tyson plants. Although the 400 affected will no longer be on the job, eligible workers will receive 60 days of pay as required by federal law.

Tyson Foods Inc on Friday said it is permanently ceasing beef production at its plant in Denison, Iowa, effective immediately, as cattle ranchers work to rebuild shrunken herds following the severe Midwestern drought. Denison was the only “slaughter-only” facility.

Last year, the U.S. cattle herd sank to its lowest level since 1951 at roughly 89 million head based on the government’s January 1 inventory report.

“The cattle supply is tight and there’s an excess of beef production capacity in the region”, Steve Stouffer, president of Tyson Fresh Meats, said in a statement. Special incentives will be offered for those who go to the Lexington plant. She said the plant’s closure has put her business, which specializes in dresses, in jeopardy.

The closure also may reduce enrollment at Denison-Schleswig School District.