America's Tyson Foods, Inc. - the world's largest processor and marketer of chicken, beef, and pork, and the second-largest food company in the Fortune 500 – has announced that it is to temporarily suspend operations at four of its beef plants beginning Monday, 10 January. The reason for this action has been cited as unfavourable operating margins in the beef market due to tight cattle supplies, lacklustre domestic demand and the absence of key export markets.

The plants affected by the closures are: Denison, Iowa, Norfolk, and West Point, Nebraska, Boise, and Idaho, which employ 2,100 people in total. The suspension of operations is predicted to last three to five weeks and will lead to a cut in slaughter of about 25,000 to 30,000 head. Second shift processing will also be stopped at a fifth plant in Pasco.

Tyson is encouraging the affected workers to take paid holidays for the first week operations are suspended. The company will then pay the equivalent of a 32 hour working week for the next three weeks workers are off the job.

"This is a difficult decision, however, we believe it's the right thing for us to do at this time, especially given the challenging market conditions and unfavourable operating margins our beef business continues to face," said chairman and CEO of Tyson Foods, John Tyson. "Our plants have been running at less than 75% of capacity over the past two months, which is 10 to 15% below historical levels."

The company, which produces a wide variety of protein-based and prepared food products, employs approximately 114,000 at more than 300 facilities and offices in the United States and around the world.

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