April 16, 2020

Smithfield Foods closes more US meat plants in Wisconsin and Missouri

The company, owned by China's WH Group, closed the plants that processed bacon and ham after shutting down the Sioux Falls, South Dakota plant due to a COVID-19 outbreak among its workers, reported Reuters.

The Cudahy, Wisconsin plant which processes bacon and sausages will be closed for two weeks, while the Martin City, Missouri plant that process spiral and smoked hams will also be shut down temporarily.

The Missouri facility processes pork from the recently closed Smithfield slaughterhouse in Sioux Falls, South Dakota, where 200 Smithfield Foods' workers were infected with COVID-19. That facility produces up to 5% of United States pork.

Smithfield Chief Executive Ken Sullivan said the Martin City plant cannot function without the Sioux Falls plant in operation.

Smithfield said a few workers in Wisconsin and Missouri have tested positive for COVID-19.

While retail demand for meat has surged in United States, restaurant and foodservice demand has plummeted.

Steve Meyer, economist for commodity firm Kerns and Associates said these plants are not as key when it comes to ensuring food supply in the country when compared to slaughterhouses.

Competitor Tyson Foods recently extended its Columbus Junction, Iowa pork slaughterhouse temporary shutdown, while other companies such as Cargill, JBS USA and National Beef Packing have closed plants as well.

-      Reuters