March 18, 2024
Tyson Foods to permanently close Iowa, US pork plant, affecting 1,200 jobs
Tyson Foods announced it will permanently shut down a pork plant in Perry, Iowa, US, resulting in the displacement of approximately 1,200 workers, Reuters reported.
The closure comes amidst a broader restructuring effort by the US meatpacking giant in response to shifting market dynamics.
While Tyson Foods experienced substantial profits during the COVID-19 pandemic due to surging meat prices, the company has encountered challenges recently, including declining demand for certain products. This closure marks the latest in a series of operational adjustments, including the shutdown of six US chicken plants and layoffs of corporate staff over the past year.
Perry Mayor Dirk Cavanaugh described the closure as a significant blow to the community, noting that the plant is the largest employer in the area. The closure is scheduled for June 28, 2024, leaving local officials grappling with the economic repercussions.
Tyson Foods, while acknowledging the difficulty of the decision, emphasised its commitment to optimising operational efficiency to better serve customers. The company encouraged affected employees to explore opportunities for employment within Tyson's other facilities.
In the fiscal year ending on September 30, Tyson's pork business reported an adjusted operating loss of US$128 million, contrasting with the previous year's income of US$198 million. Factors contributing to the decline include a 2.2% reduction in sales volumes and a 7.9% decrease in average prices.
The Perry plant, which processes around 9,000 swine daily, represents a small fraction, approximately 2%, of total US pork production, according to Steve Meyer, chief livestock economist for Ever.Ag. This closure comes amid broader industry challenges, with other major players like Smithfield Foods also scaling back operations in response to oversupply and weakened consumer demand.
- Reuters
