Tyson, Rival to Reduce U.S. Beef Output

Tyson Foods Inc., the world’s largest meat processor, and National Beef Packing Co. will reduce beef production in the U.S. because of weakening demand and a lack of exports after a case of mad cow disease.

Four plants in Iowa, Nebraska and Idaho will suspend production for as long as five weeks beginning Monday, Springdale, Ark.-based Tyson said Thursday. A second shift will be eliminated at a facility in Washington. National Beef plans to cut production by as much as 23% at its two plants in Kansas.

Meatpackers were hurt when more than 40 nations banned U.S. beef after a December 2003 case of mad cow disease in Washington state. Tyson saw fourth-quarter profit in its beef business plunge 79% as overseas sales evaporated.

National Beef will reduce its slaughter by 10,000 to 15,000 head of cattle a week. The company normally kills 65,000 to 68,000 head a week.