Tyson Foods Disputes USDA Claim on Sale of Shuttered Beef Plants

Tyson Foods (NYSE: TSN) has directly disputed a claim by U.S. Department of Agriculture Secretary Brooke Rollins that the meatpacker had committed to selling its shuttered beef plants exclusively to American-owned entities. The company clarified that its position has not changed and it will consider any qualified buyer, regardless of nationality.

Conflicting Accounts

Speaking Tuesday at the Farm Progress Show in Iowa, Secretary Rollins told reporters she had secured a "verbal commitment" from Tyson CEO Donnie King. According to Rollins, King had assured her that the three beef plants the company announced it was closing last month would be sold to "an American-owned company or producers."

In response, a Tyson spokesperson stated, "Our company’s stance on selling the closed plants has not changed." The statement reaffirmed that Tyson is open to offers from both foreign and domestic buyers for the facilities, which were closed amid deepening losses in its beef business.

Industry Consolidation in Focus

The public disagreement highlights ongoing tensions between the Trump administration and the highly concentrated U.S. meatpacking sector. Four companies—Tyson, Cargill, JBS USA, and National Beef Packing Company—process approximately 85% of the grain-fattened cattle in the United States.

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Foreign ownership is a significant factor in this market. JBS USA is a subsidiary of Brazil's JBS S.A., while another Brazilian firm, Marfrig Global Foods S.A., holds a controlling interest in National Beef. The administration has previously voiced concerns about foreign control over domestic food processing capacity.

Political and Economic Pressures

The dispute comes as record-high beef prices have become a politically sensitive issue ahead of the November midterm elections. The Trump administration has taken a complex stance, ordering a Justice Department investigation into alleged price manipulation by meatpackers last year while also recently authorizing an additional 300,000 metric tons of foreign beef imports at reduced tariffs.

Despite high consumer prices for beef, major processors like Tyson have reported financial losses in their beef segments, citing the high cost of cattle. In response to industry challenges, the USDA recently announced a plan to provide loans to smaller meat processors and open conserved land for grazing to increase cattle supply.