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US agribusiness giant Cargill will permanently close its beef processing facility in Milwaukee, Wisconsin, eliminating 221 jobs.

The Milwaukee facility specialises in fresh beef, ground beef and value-added products but does not slaughter cattle. Cargill operates seven other facilities across Wisconsin, and some affected employees are expected to transition to a nearby plant in Butler, Wisconsin.

In a statement, a Cargill spokesperson said the company made the “difficult decision to close its Milwaukee ground beef facility to better align our portfolio with current customer demand and prioritise investments where they are needed most for the future”.

“We recognise the impact this decision has on our 221 employees, and our focus is on supporting them with respect, care and assistance as they navigate this transition,” the spokesperson added.

The move marks the latest contraction in the US beef processing sector as meatpackers grapple with elevated cattle costs and tight margins.

The closure follows similar announcements from rival meatpackers JBS and Tyson Foods, both of which revealed plans late last year to shutter US beef plants amid mounting cost pressures.

Beef prices remain near record highs, supported by strong consumer demand and reduced cattle supply. The shrinking US herd has driven up input costs for processors, squeezing margins even as retail prices climb.

Compounding market dynamics, US President Donald Trump signed a proclamation increasing low-tariff imports of Argentine beef, a move aimed at easing supply constraints and stabilising prices in the domestic market.

Cargill said ground beef production from the Milwaukee facility will be shifted to other North American beef processing plants to ensure continued service to customers.