Why are Tyson chicken plants shutting down? CEO issues statement on closures 

In a major turn of events, Tyson Foods Inc. announced that it will be shutting four more plants in an attempt to cut costs. Though the establishment made major profits with the increase in meat prices during the COVID-19 pandemic, it is now facing major financial issues due to the decline in price and the decreasing demand for several items.

As per the establishment, the four chicken plants that employ more than 3,000 workers in Missouri, Indiana, and Arkansas will be shutting down either by the end of 2023 or at the beginning of 2024.

Tyson Foods Inc. was forced to close four more plants following a decline in demand (Image via Sheldon Cooper / Getty Images)

Though the establishment did not confirm the number of workers that may be affected by the closure, it was hinted that the establishment will either encourage them to apply for other positions at the establishment or relocate them to other nearby locations. The closure is also said to affect several farmers who used to supply chicken to the facility and grain growers who cultivated chicken feed.

Donnie King, the CEO of Tyson Foods Inc. shared a statement about the situation and said:

"We are seeing a few more tailwinds in parts of our businesses. In terms of what we're doing about all of this, our vision is delivering sustainable top-line growth and margin improvement over the long run. That's our plan. That's been our plan."

As per the Economic Times, announcing the news of the closures, the CFO of the establishment said:

"These moves are difficult certainly. For the long term of Tyson, this is a move that should allow us to be better, more efficient, and serve our customers better."

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Tyson Foods Inc. reported a net loss of over $417 million for the latest quarter

The largest meat producer in the United States, in terms of sales - Tyson Foods Inc. - has announced that it will be closing down at least four separate chicken plants across the U.S. by the end of 2023. The four facilities that will no longer be functional in the coming months are located in Missouri, Indiana, and Arkansas. After making major profits during the COVID-19 pandemic, the establishment is now facing a cash crunch as the price and demand for meat products continue to decline.

Reuters reported a decline of over 16.4% in the price of pork while chicken fell down to over 5.5% in the last few years. With prices for meat and meat products declining so rapidly, several meat-producing companies including Tyson are left struggling. Though the establishment seems hopeful for the future, it has reported a net loss of over $417 million for the latest quarter. It is worth noting that the brand made a profit of over $750 million during the same period last year.

The four locations that will be closing down are located in Missouri, Indiana, and Arkansas (Image via RiverNorthPhotography / Getty Images)

The four plants that will be shutting operations by the end of the year are located in the following regions:

1. Noel, Missouri
2. North Little Rock, Arkansas
3. Dexter, Missouri
4. Corydon, Indiana

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This comes after Tyson Foods Inc. already shut two locations in Virginia and Arkansas earlier this year. The new announcement takes the total number of shutdowns to six. This is estimated to affect more than 4,500 employees, out of which at least 1,600 are from the two previous closures.