400 Lose Jobs with Tyson Foods Closure of Iowa Beef Plant

Tyson Fresh Meats, a subsidiary of Tyson Foods Inc., announced Friday it’s permanently closing the beef operations at its plant in Denison, Iowa, a move that eliminates 400 jobs in the town of 8,300 people.

Tyson said it’s closing the plant due to a continued lack of available cattle.

“This was a very difficult decision because it affects the lives of our people, their families and a community that has supported this plant for more than 50 years,” said Steve Stouffer, president of Tyson Fresh Meats. “However, the realities of the beef business have changed and we must continue to change with it to remain successful.

“The cattle supply is tight and there’s an excess of beef production capacity in the region. We believe the move to cease beef operations at Denison will put the rest of our beef business in a better position for future success.”

The by-product rendering system at the Denison plant will continue operations. It will process by-products from other Tyson locations and will employ approximately 20 people, according to the Tyson press release.

Denison mayor Brad Bonner said he received a letter and a visit from a Tyson representative Friday morning.

“It came as an absolute shock,” Bonner said, speaking by phone to the Northwest Arkansas Business Journal.

News of the Tyson closure triggered the city’s economic disaster recovery plan. Along with the Chamber and Development Corp. of Crawford County, Iowa Workforce Development will meet with affected employees, discuss their options, and then conduct a job fair on Aug. 25.

Bonner said there are hundreds of jobs available in Denison, including at the Farmland Foods Inc. plant, and at the local hospital.

“I have to reassure people that while this is not fun, it is not the end of the world,” Bonner said.

The affected employees will also have an opportunity to apply for jobs at other Tyson locations. The company is offering financial incentives to hourly workers who qualify for production openings at the company’s Lexington, Nebraska, beef plant, according to the Tyson press release. Eligible displaced workers will receive 60 days of pay, as required by the Worker Adjustment and Retraining Notification (WARN) Act.

The Denison beef plant opened in 1961 as the first plant operated by Iowa Beef Packers, a start-up company that grew to become one of the world’s leading beef processors. IBP was acquired by Tyson Foods in 2001 and renamed Tyson Fresh Meats. Tyson has other beef plants in Amarillo, Texas; Dakota City, Nebraska; Finney County, Kansas; Joslin, Illinois; Lexington, Nebraska and Pasco, Washington.