Small Nebraska town tries to steady itself after Tyson Foods announces meat processing plant closure

The Tyson Foods beef processing plant in Lexington, Nebraska, wasn't just a slaughterhouse that offered good wages and steady employment; it was the rural town's hub. The company's announcement in November that it would be closing the plant due to financial losses in the meatpacking industry in early 2026 shocked the community," report Scott Calvert and Patrick Thomas of The Wall Street Journal. 

Once a town of roughly 6,600 residents, with a small Hispanic population, the 35-year-old Tyson plant helped Lexington's population grow and its demographics change. Calvert explains, "By 2000, its population rose to 10,000, half of them Hispanic, a share that now stands at 65%."

Once the plant closes later this month, an economic and social domino effect is likely to change the town again. "An exodus of residents would slash local school enrollment and the customer base for area businesses," the Journal reports. "Truckers, feedlot operators and cattle ranchers face hits to their bottom line without the Lexington facility." 

Location of Lexington within Nebraska 
and Dawson County (Wikipedia map)

Lexington’s city manager, Joe Pepplitsch, remains optimistic that the town can rebound from Tyson's closure. He told the Journal, "There’s a hell of a lot of positives here."

Government officials want Tyson to retrofit or sell the plant. They don't want the sprawling buildings sitting idle. Calvert writes, "A Tyson spokeswoman said the company is assessing how it can repurpose the facility."

Some plant workers have already quit and relocated to work at the JBS meatpacking plant about 90 miles east in Grand Island, Neb., while others have taken packing positions at Sustainable Beef in North Platte, Neb.