Texas Agriculture Daily News
Cargill to idle Plainview meat processing plant
Friday, January 18, 2013
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A shrinking herd of cattle affected by the prolonged drought and high feed costs has led Cargill to idle its meat plant in Plainview.
The company made the announcement Thursday that the beef processing facility will stop production at the close of business Feb. 1.
"While idling a major beef plant is unfortunate because of the resulting layoff of good people, which impacts their families and the community of Plainview, we were compelled to make a decision that would reduce the strain created on our beef business by the reduced cattle supply," John Keating, president of Cargill Beef in Wichita, Kan., said. "The U.S. cattle herd is at its lowest level since 1952. Increased feed costs resulting from the prolonged drought, combined with herd liquidations by cattle ranchers, are severely and adversely contributing to the challenging business conditions we face as an industry. Our preference would have been not to idle a plant."
Approximately 2,000 people work at the Plainview facility, and Cargill states that they will be given company support and assistance in finding open positions at other Cargill locations or with other employers.
The company's remaining beef cattle processing plants in Friona, Texas; Dodge City, Kan. and Fort Morgan, Colo. will receive cattle that were destined for processing in Plainview.
The announcement, published on EverythingLubbock.com, indicates that Cargill has included measures to preserve the infrastructure at the Plainview plant so that it could potentially re-open at a future time.
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