January 4, 2024

 

US chicken producers sue Tyson following shutdown of Missouri plant

 

 

 

A group of chicken producers of Tyson Foods' former Dexter, Missouri, US processing plant claims Tyson breached their contracts when it shut down the site.

 

The farmers filed suit against Tyson Foods on Dec. 22 with the Circuit Court of Stoddard County in Missouri.

 

In their complaint, the plaintiffs seek US$25,000 and additional relief for damages.

 

According to the farmers, Tyson knew as early as November 2021 that it would cease operations in Dexter by 2023-2024. While holding this knowledge, Tyson led the farmers to make additional investments and incur debts, the court documents said.

 

Under a vertically integrated chicken production system, Tyson owned all the chickens throughout the hatching, growing and slaughter process at the Dexter complex. Farmers who raised the chickens were brought in through contracts.

 

The plaintiffs said Tyson exercised control over how the chickens were raised, including what equipment and supplies were used.

 

The farmers had the expectation based on statements and promises from Tyson that their relationship with the company would continue so long as they met Tyson's demands.

 

Tyson's Dexter plant had been operating for over 20 years before shuttering its doors. In August 2023, Tyson announced the facility would close by October that year.

 

The company recently reached an agreement with Cal-Maine Foods for the egg producer to take over the Dexter complex. Cal-Maine plans to convert the poultry processing plant into an egg grading facility.

 

In Cal-Maine's announcement of the agreement, the company said it expects to enter into agreements with some of Tyson's former contract farmers to convert their operations to support Cal-Maine's cage-free, free range or pasture-raised egg production operations.

 

- Meat + Poultry

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