Smithfield Foods to shutter California meat-packing plant

[mystery-ak]

Smithfield Foods to shutter California meat-packing plant

Meat-packing giant Smithfield Foods says it will close its only California plant next year, citing the escalating cost of doing business in the state
ByThe Associated Press
June 10, 2022, 7:43 PM

VERNON, Calif. -- Meat-packing giant Smithfield Foods said Friday it will close its only California plant next year, citing the escalating cost of doing business in the state.

The Farmer John meat-packing plant in Vernon, an industrial suburb south of Los Angeles, will shut down in February, with its 1,800 employees receiving severance and job placement support along with bonuses for those who choose to stay on the job until the closure, said Jim Monroe, vice president of corporate affairs.

Some workers, who on average earn about $21 per hour, also will have opportunities to relocate to other facilities owned by the Virginia-based Smithfield Foods Inc.

The Vernon plant slaughters pigs and packages products such as ham and bacon. Some operations will be moved to other facilities in the Midwest, but the overall reduction in processing capacity is prompting Smithfield to reduce its sow herd in Utah. The company also said it is exploring ways to exit its farms in California and Arizona.

Monroe said operating costs in California are much higher than in other areas of the country, including taxes and the price of water, electricity and natural gas.

“Our utility costs in California are 3 1/2 times higher per head than our other locations where they do the same type of work,” he said.

more
https://abcnews.go.com/Health/wireStory/smithfield-foods-shutter-california-meat-packing-plant-85321387

[Kamaji]

Couldn't happen to a more deserving state.

[Smokin Joe]

IIRC, the Chinese bought Smithfield...

In 2013, WH Group (formerly known as Shuanghui International Holdings) purchased Smithfield for $4.7 billion; including debt, the deal valued the firm at $7.1 billion, then the largest acquisition of a U.S. company by a Chinese business.

[GtHawk]

I'm sure there are lots of costs that are pushing the decision, taxes and labor, though from what I see only some of the workers will get paid $21. I bet the fact that the plant has been there since 1931 may factor into the costs aspect quite a bit. I did work in Vernon, CA. it's crappy little industrial city and I doubt anyone will miss Farmer Johns and their stench on slaughter days between them and the five rendering plants in and around Vernon the stench hits a number of cities in the prevailing wind path.

[PeteS in CA]

I'm sure at least some of the workers there will be less than happy. OTOH, I'm sure there are Arizona or Nevada towns along the I-10 or I-15 that would welcome a jobs producer.