American Foods Group shuts down processing facility
AFG ceases harvest operations at Cimpl’s facility in Yankton, impacting over 250 employees. The decision was driven by cattle supply challenges and long-term industry trends.
USA – American Foods Group (AFG) has officially halted harvest operations at its Cimpl’s facility in Yankton, South Dakota.
The decision, attributed to an unprecedented cattle cycle and evolving industry dynamics, affects more than 250 employees, the company confirmed.
“We made the tough decision to idle harvest operations at our Cimpl’s facility, affecting over 250 employees,” said Louie Kohlbeck, president of AFG’s Fresh Meats Division.
“We recognize the profound impact this has on our team members, their families, and the community. Our top priority is supporting those affected during this transition.”
Support for Employees and Operational Adjustments
AFG has committed to supporting displaced employees, offering relocation opportunities to other facilities.
The company will continue paying wages and providing benefits during the transition period.
Other AFG facilities will remain fully operational, ensuring no disruptions in cattle procurement and supply chains.
The Cimpl’s facility, which began operations in 1949, was acquired by American Foods Group in 2005 after being previously owned by the Rosen Meat Group.
“We take these types of decisions seriously, and this decision was not made lightly,” Kohlbeck added.
“We appreciate the hard work of our Yankton employees and thank them for their cooperation and understanding.”
The closure has also prompted reactions from the Yankton community, with Nancy Wenande, CEO of Yankton Thrive, expressing shock and disappointment over the move.
New US$800M Facility to Open in 2025
Despite the closure in South Dakota, AFG remains focused on expanding its operations.
The company is in the final stages of constructing its state-of-the-art beef harvest facility, America’s Heartland Packing LLC, in Wright City, Missouri.
Set to open in April 2025, the $800 million facility spans 775,000 square feet and will include:
- A harvest floor
- Carcass chillers
- Fabrication and rendering areas
- Further processing sections
- Cold storage, freezers, and loading docks
Once fully operational, the Wright City plant will have the capacity to process 2,400 cattle per day, significantly expanding AFG’s beef production capabilities.
With over 4,500 employees nationwide, the privately held, family-run company remains committed to supporting its workforce and maintaining a strong presence in the meat industry despite ongoing industry challenges.
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