Cargill says it plans to shut down its beef plant in Milwaukee and lay off more than 200 workers amid turmoil in the U.S. beef industry.
Reuters reports that the agribusiness giant notified Wisconsin officials that it intends to halt production at the facility in mid-April and close it entirely at the end of May. The move would affect 221 workers, although some could shift to a nearby plant in suburban Butler, Wisconsin — one of seven other Cargill facilities in the Badger State.
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Cargill indicated in the filing that shutting the plant would “better align” its portfolio with demand, as well as prioritize the company’s investments.
The Milwaukee plant primarily produces fresh beef, ground beef and other, valued-added products; it does not slaughter cattle. The company said that ground beef production would move to other Cargill facilities in North America without affecting customer contracts.
Cargill is just the latest meat producer to close one of its beef plants in the U.S., where years-long drought conditions have reduced the overall cattle herd to its lowest level in decades. That shortage, combined with strong consumer demand, has pushed beef prices toward record highs — and cut into meat processors’ bottom lines. JBS was set to close a Southern California beef plant earlier this month, while Tyson is shutting down a plant in Nebraska that employed more than 3,000 people.
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