Workers at a key JBS beef processing facility in Greeley, Colorado, initiated a strike on Monday, curtailing production as beef prices reach record highs.

The Greeley plant is one of the largest of its kind in the United States, with a capacity to slaughter approximately 6,000 cattle per day, accounting for about 5% of the nation's beef processing capability. This strike, led by unionized workers, represents the most significant work stoppage in the meatpacking industry in decades. The action coincides with a period where meat companies are facing billions in annual losses from beef production. The smallest cattle herd size in 75 years has driven up the cost of purchasing cattle from ranchers, severely squeezing meat processors' profit margins.

JBS, headquartered in Brazil, is the world's largest meat processor and the biggest beef producer in the U.S. by volume. For the first nine months of 2025, JBS reported an operating loss of $566 million in its North American beef segment, a sharp increase from a $64 million loss during the same period the previous year.

The United Food and Commercial Workers International Union agreed to a new, long-term labor contract last year, covering approximately 26,000 workers across more than a dozen U.S. plants. However, the local union representing roughly 3,800 workers at the Greeley facility rejected this national agreement, arguing that it fails to account for Colorado's higher cost of living.

JBS and the local Greeley union negotiated for months over a new labor contract but were unable to reach an agreement. The union stated that JBS refused to offer wage increases that keep pace with inflation and also demanded that the company stop charging employees for necessary protective equipment, such as gloves.

Kim Cordova, President of the UFCW local chapter representing the Greeley workers, said, "JBS is more interested in creating labor disputes at the Greeley plant than in resolving these issues."

In preparation for a potential shutdown, JBS began canceling cattle deliveries and halting slaughter operations at the plant last week. The company is diverting cattle from feedlots to other major processing facilities in the U.S., such as those in Grand Island, Nebraska, and Cactus, Texas.

The company stated its goal is to minimize the impact on customers and the overall market, adding that any employees unwilling to strike are permitted to work normally and will be paid. A JBS spokesperson said, "We believe a strike is not in the best interest of employees and their families. We stand by our previous offer, which is generous, fair, and consistent with the historic national contract reached in 2025."

JBS's U.S.-listed stock has declined by approximately 6% over the past month.

The temporary plant closure removes a major buyer for U.S. cattle ranchers, putting downward pressure on livestock prices. This situation could potentially allow meat processors to achieve higher profits when operating at full capacity to meet rising U.S. protein demand, provided they can secure cattle at lower costs.

Anticipating the strike, live cattle futures prices—which reflect what meatpackers pay feedlots for animals—have fallen 4% over the past month. Despite this recent dip, prices remain more than 13% higher than they were 12 months ago.

Beef companies have been adjusting operations to cope with tight U.S. supplies. JBS's competitor, Tyson Foods, closed a larger facility in Nebraska in January, eliminating 3,200 jobs, citing rising cattle costs. Tyson also halved production at a major Texas plant earlier this year to reduce expenses.

With ranchers showing reluctance to expand their herds, cattle costs are expected to remain elevated for years to come. For consumers, this environment means beef prices have surged to record levels. Data from the U.S. Labor Department shows that the price for ground beef increased 15% year-over-year last month.