050125 Tyson Says It Will Trim Beef Operations

Springdale, AR - Tyson Foods Inc. said it would temporarily cut operations at four beef plants and scale back production at another because of tight cattle supplies, low demand and a reduction in the number of its overseas markets.

The reduction, expected to last three to five weeks, affects about 2,100 workers, who are being asked to take one week of paid vacation. Tyson said it would give workers the equivalent of a 32-hour work week over the next three weeks. Other benefits, including health insurance, will continue.

Managers, their support teams and maintenance workers will remain on the job, the company said.

Production will be suspended at Denison, Iowa; Norfolk and West Point, Neb.; and Boise, Idaho. Second-shift processing at a plant in Pasco, Wash., will also be temporarily halted. The plants process up to a combined 30,000 head per week.

"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 unfavorable operating margins our beef business continues to face," John Tyson, chairman and chief executive of Tyson Foods, said in a statement.

Visiting a Lexington, Neb., plant last month, Tyson said part of his company's cattle supply problem stems from a U.S. ban on live cattle from Canada that began in May 2003 because of a case of mad cow disease in that country. Also, a number of overseas countries closed their markets to American beef after a mad cow scare.

Tyson is the world's largest supplier of chicken, beef and pork.

The number of workers affected at each plant include 275 at Denison, 900 at Norfolk, 275 at West Point, 250 at Boise and 400 at Pasco, the company said.

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