Tyson Plant Closure Could Send Cattle Hauls 400 Miles Away
Farm & Freight Report
Some cattle producers in Illinois could now face a painful double hit. They may have to pay to haul cattle hundreds of miles farther than before, while also getting offered $200 to $300 less per animal because one of the biggest buyers in the area just disappeared.
That is what could happen after Tyson Foods suddenly shut down its beef processing plant in Joslin, Illinois. For some producers, this plant was practically around the corner. Now, the next option could be 160 miles away, 280 miles away, or even about 400 miles away. And when you are moving cattle by truck, 400 miles is not just a longer drive. It is more diesel, more driver time, more wear on the truck, more hours on the clock, and potentially a much bigger transportation bill.
Tyson announced that it was ending operations at the Joslin beef plant as part of a larger restructuring of its beef business. The company also announced the closure of a beef facility in Eagle Mountain, Utah, and said it plans to sell another facility in Pasco, Washington. Tyson says the beef industry is dealing with a historic shortage of cattle, and the company wants to move more production through a smaller number of plants.
That may make Tyson's network more efficient. But for cattle producers who depended on the Illinois plant, the cattle still have to go somewhere. And somebody still has to haul them.
A 22-Mile Trip Becomes a 400-Mile Trip
Farm Progress spoke with cattle feeder Al Lyman, whose operation is only about 22 miles from the Joslin plant. Before the shutdown, that was a very short trip. Now, some of his other options are much farther away. One plant is about 160 miles away. Another is about 280 miles away. Tyson's Dakota City, Nebraska plant is roughly 400 miles away.
Think about the difference. A 22-mile cattle haul and a 400-mile cattle haul are not even close to the same job.
Let us put some simple numbers on it. Suppose the new trip adds about 300 extra miles. If the truck averages around 6 miles per gallon, those extra miles would burn about 50 more gallons of diesel. At $4 per gallon, that is about $200 in extra fuel.
And that is only fuel. It does not include the driver's time. It does not include tires. It does not include maintenance. It does not include depreciation. It does not include insurance. And it definitely does not include the possibility that the truck may have to come back empty.
So that $200 can become a much bigger number very quickly.
Fewer Buyers, Lower Bids
Now here is the second problem. The Joslin plant was not just a place where cattle were processed. Tyson was also a major buyer of cattle in that region.
When a major buyer disappears, local cattle producers have fewer companies competing to buy their animals. And when there are fewer buyers, the remaining buyers may not have to offer as much money. Industry experts quoted by Farm Progress said cattle bids in the area could potentially fall by around $200 to $300 per head.
That does not mean every farmer will automatically lose $300 on every animal. It is an estimate of how much weaker bids could become if competition for cattle drops.
But the math shows why producers are worried. If a producer sells 100 cattle and gets $200 less per animal, that is: $20,000 less revenue. At $300 less per animal, that becomes: $30,000 less revenue.
Now imagine a producer selling 1,000 head. A $200 difference would equal $200,000. A $300 difference would equal $300,000.
So the producer could potentially be dealing with both problems at the same time. Less money for the cattle. More money to move them. That is a rough combination.
Tyson's Side of the Story
The Joslin plant had the capacity to process around 3,000 cattle per day. That means a large amount of cattle that normally flowed through one location now has to be redirected somewhere else.
Tyson says the company plans to shift more production to major beef plants in Dakota City, Nebraska, Holcomb, Kansas, and Amarillo, Texas. The company says it expects to continue processing roughly the same overall amount of cattle by using those remaining plants more efficiently.
From Tyson's point of view, the company is trying to deal with a smaller national cattle supply and control costs.
But some Illinois producers are questioning how the shutdown happened. Farm Progress reported that producers received very little warning. One cattle feeder said a Tyson cattle buyer had visited his operation just two days before the closure and apparently did not know the plant was about to shut down.
The Illinois Beef Association has also questioned whether the local cattle supply was really the problem, saying Illinois producers had continued supplying the facility.
So there are two very different perspectives here. Tyson says it is restructuring because the national beef business is under pressure and there are not enough cattle. Local producers say they were still supplying cattle and were caught off guard by the closure.
What It Means for Truckers
But for truckers, the most important part is much simpler. The freight moved. If cattle that used to travel 20 or 30 miles now have to travel 200, 300, or 400 miles, that creates more trucking demand.
But more miles do not automatically mean more profit. A longer haul only makes sense if the rate covers the longer haul.
If you are a livestock carrier and somebody suddenly asks you to haul cattle several hundred miles farther than before, do not look only at the loaded mileage. Look at the full trip.
How much fuel will you burn? How many hours will it take? Can you legally complete the trip within your available hours? Will you have a return load? Or are you coming back empty? How much additional wear are you putting on the truck and trailer?
Then price the load accordingly. Because if the shipper's transportation problem just got 300 miles more expensive, that does not mean your truck should absorb the difference.
The biggest lesson here is simple. When a major customer, plant, warehouse, or processing facility closes, the freight does not always disappear. Sometimes it just moves farther away.
And when it does, the first question for the trucker should be: Who is paying for those extra miles?