May 19, 2014
 
Cargill US to lay off staff due to low cattle supply

 

Cargill Meat Solutions, the US meat business of agri-giant Cargill, will be laying off staff at its Dodge City processing facility due to tight cattle supplies in the US, just-food reports.

"Our analysis of the cattle supply for the next few years projects continued tight supplies as the herd begins to rebuild from the recent drought conditions. Aligning production with the available supply for harvest will enable the plant to run more efficiently," a spokesperson for the company said.

According to the spokesperson, the company does not have a firm number on how many employees will be laid off or reassigned. However, the spokesperson confirmed that the site will still employ well above 2,000 people.

"Dodge City continues to be an integral part of the beef business for Cargill. We are continuing our investment in the Dodge City plant. Work continues on the US$50 million box distribution facility currently under construction. When completed, this addition will improve the operational efficiency and customer service levels at this location," the spokesperson said.

Drought conditions in the western states have impacted food production. According to a USDA report released in January, the US cattle herd shrank to a 63-year low in 2013. The National Agricultural Statistics Service reported that the US inventory of cattle and calves totalled 87.7 million on January 1, down by 2% on the year, the second straight year the herd shrank by 2%.