JBS announced Friday that it will shut a smaller U.S. beef slaughterhouse, the latest sign of the severe cattle shortage weighing on the American meat industry.
The Brazilian company will halt slaughter operations in Souderton, a suburb of Philadelphia, Pennsylvania. JBS also said it will shut a processing facility in Memphis, Tennessee.
In a statement released Friday, the company said production from the affected plants will be transferred to other facilities, ensuring continuity of supply.
The Souderton plant employed about 1,700 workers and had the capacity to process 2,000 head of cattle per day. JBS described it as “one of the smallest facilities” in its U.S. network. The company’s U.S. operations are estimated to slaughter about 28,500 cattle per day.
In a note to clients, XP analyst Leonardo Alencar said the closure is likely to have only a regional impact rather than affecting the broader U.S. market.
“While the news reinforces the view that processing capacity adjustments are needed across the industry given constrained cattle supplies, this facility is relatively insignificant within the sector. The shutdown should have a regional, not national, impact,” he wrote.
JBS said the measures are “part of a broader strategy focused on growth, modernization and competitiveness,” highlighting recent investments in the U.S., including plant expansions in Texas, Georgia and Iowa.
The closure is the latest move by the industry to adjust capacity and improve efficiency in response to tighter cattle supplies in the United States.
JBS had already announced the closure of a California facility at the end of 2025. Rivals including Tyson Foods Inc. and Cargill Inc. have also recently shuttered plants.
The U.S. cattle herd has fallen to its lowest level in 75 years, as ranchers have been forced to cull more animals due to drought and rising costs.
Since the start of the year, JBS has said it expects conditions in the U.S. beef business to improve only from 2027 onward.
