By Patrick Thomas

U.S. cattle herds may be smaller for the foreseeable future as ranchers show few signs of building up the nation's livestock supply, said executives from Tyson Foods, America's largest meat supplier.

Officials at the Arkansas-based company said the shortage of cattle on U.S. pastures is expected to last through at least 2026 and 2027. Last week the U.S. Agriculture Department said the cattle herd was at its lowest level since 1951. The tighter supply is driving up cattle costs and squeezing meatpackers like Tyson.

"The data that we see indicates an ultimately smaller herd," Tyson Chief Operating Officer Devin Cole said on a call with analysts. "Cattle are going to remain extremely tight."

Tyson said its cattle costs rose about $850 million for the quarter that ended Dec. 27 compared to a year ago. In November, Tyson said it was closing its Lexington, Neb., beef plant-one of the largest in the U.S.-laying off about 3,200 workers. It also cut production at its larger Texas facility.

"Continuing to absorb losses like we have been seeing for the past two years is simply unacceptable," said Tyson CEO Donnie King on the call about the company's decision to close a plant.

Tyson executives said there are some U.S. regions where ranchers have shown early signs of herd rebuilding, but it will take about two years until that translates into more cattle for meatpackers to process.

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February 02, 2026 11:43 ET (16:43 GMT)

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