HomeIndustriesTyson Foods Shares Dip Following Chicken Plants Closure Announcement

Tyson Foods Shares Dip Following Chicken Plants Closure Announcement

Tyson Foods, one of the world’s biggest processors of meat and poultry, announced it would close four of its chicken plants as a way to cut costs. The news caused the company’s shares to plunge 11% on Monday before recovering on Tuesday.

The company closed two of its chicken plants in Arkansas and Virginia earlier this year. Now, Tyson Foods will also cease production at production facilities in North Little Rock, Arkansas; Corydon, Indiana; Dexter, Missouri; and Noel, Missouri. The North Little Rock, Dexter, and Noel plants will close by October, while the Corydon facility will shut its door by March 2024.

Tyson Foods benefited from rising prices and increased demand for its products during the pandemic, raking in record profits. However, customer habits have now changed, with the demand for processed food being on the decline.

The chicken plant closures will deal a tough blow to the communities and cause thousands to lose their jobs. However, Chief Financial Officer John R. Tyson said that the company would make efforts to relocate some of the workers and encourage them to apply for new positions within Tyson Foods.

“These moves are difficult certainly,” Tyson said during a conference call with analysts. “For the long term of Tyson, this is a move that should allow us to be better, more efficient, and serve our customers better.”

Tyson Foods stock dipped to $51.00 per share at one point on Monday compared to Friday’s close price of $56.47. The shares were trading at around $55 on Tuesday.

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