Cargill Idles Plainview Beef Processing Plant Affected Employees to Receive Support
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ARGILL IDLED ITS PLAINVIEW BEEF PROCESSING FACILITY effective at the close of business Feb.1, due pri- marily to the tight cattle supply brought about by
years of drought in Texas and Southern Plains states. Approximately 2,000 people worked at the Plainview facility, and they received company support. “The decision to idle our Plainview beef processing
plant was a diffi cult and painful one to make and was made only after we conducted an exhaustive analysis of the regional cattle supply and processing capacity situation in North America,” said John Keating, presi- dent of Cargill Beef, based in Wichita, Kan. “While idling a major beef plant is unfortunate
because of the resulting layoff of good people, which impacts their families and the community of Plainview, we were compelled to make a decision that would reduce the strain created on our beef business by the reduced cattle supply,” Keating said. “The U.S. cattle herd is at its lowest level since 1952. Increased feed costs resulting from the prolonged drought, combined with herd liquidations by cattle ranchers, are severely and adversely contributing to the challenging business conditions we face as an industry. Our preference would have been not to idle a plant.” The company’s remaining beef cattle processing
plants in the region, at Friona, Dodge City, Kan., and Fort Morgan, Colo., will receive cattle that were previ- ously destined for processing at Plainview. The com- pany’s regional beef facilities at Fresno, Calif., Mil- waukee, Wis., and Wyalusing, Pa., as well as its beef plant in Schuyler, Neb., and 2 beef plants in Canada, are unaffected. “Given the over-capacity that exists with 4 major
beef plants in the Texas Panhandle and a dwindling supply of cattle in the region, idling Plainview will allow Cargill to operate its other beef plants in Texas, Colorado and Kansas more consistently on a 5-day- per-week basis to meet our customers’ requirements, while helping us maintain our position in the U.S. beef sector,” explained Keating. The plan to idle Cargill’s Plainview facility includes
measures for preserving its infrastructure for potential reopening if the U.S. cattle herd rebounds and requires additional processing capacity. However, Cargill does not expect the U.S. cattle herd to signifi cantly increase
18 The Cattleman March 2013
Brad Barnes, left, president and general manager of the Fort Worth Stock Show and Rodeo, and TSCRA President Joe Parker Jr., Byers, welcomed TSCRA members to the fi rst ranch gathering of 2013, part of the Fort Worth Stock Show and Rodeo. The Ranching Heritage Celebration dinner was held Saturday, Jan. 19, just before the FWSS Ranch Rodeo.
in size for a number of years. “We delayed the decision to idle Plainview as long
as possible, due in part to our outstanding team and ongoing excellent support from the community. We were also hoping the drought would break, pasturelands would be restored, cattle ranchers would retain heifers and the national herd trend of declining numbers over the past few years would be reversed,” stated Keating. “Unfortunately, the drought has not broken, feed
costs remain higher than historical averages and the herd continues to shrink. The industry has experienced this cycle in the past, although this one is longer and more severe than most. Nevertheless, we are optimis- tic about the long-term prospects for U.S. beef demand from American and international consumers, and that the drought in Texas and the Southern Plains will be- come a memory.”
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