JBS, the world’s largest meatpacker, announced it will permanently shut down its Swift Beef Co. facility in Riverside early next year, eliminating 374 jobs and reshaping a piece of the West Coast beef supply chain. The Riverside plant, which cuts and packages beef for supermarket meat cases but does not slaughter cattle, is scheduled to close on Feb. 2, according to a notice filed with the California Employment Development Department and company statements.

The move comes amid tight cattle supplies nationwide that have helped drive beef prices to record highs. Persistent drought conditions across major cattle-producing regions have led ranchers to reduce herd sizes to their lowest levels in decades, while U.S. restrictions on Mexican cattle imports have further tightened available supplies. Those pressures have raised costs for meatpackers and contributed to broader industry challenges.

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Yet a JBS spokesperson told Reuters the closure is part of a strategic effort to “optimize its value-added and case-ready business and simplify operations across its network,” rather than a direct response to cattle shortages. The company says it will transfer Riverside production to other facilities and that affected employees will be eligible for opportunities at other JBS plants, with relocation support offered for those who choose to move.

The closure reflects broader consolidation trends in the meatpacking sector as companies adjust to supply constraints and consumer demand for value-added, case-ready products. Rivals also are reshaping their operations. Tyson Foods plans to shut a major cattle slaughtering plant in Nebraska and reduce shifts at another facility in Texas.

The closure highlights ongoing pressures facing the beef supply chain, at a time when political attention on meat prices has intensified. President Donald Trump has publicly criticized meatpackers over high beef costs and said he is working to bring down prices for consumers.