Butterball to close Arkansas turkey plant, to lay off 180 workers

USA – Butterball is set to close its processing plant in Jonesboro, Arkansas, next year, a decision that will result in the layoff of approximately 180 employees. 

The move comes as the poultry industry continues to grapple with declining sales and profits due to lower turkey prices.

The company announced the closure through a Worker Adjustment and Retraining Notification (WARN) filing on December 4. 

Operations at the plant, which has been in service for nearly 19 years, are scheduled to wind down by February 3, 2025. 

Butterball plans to shift production from the Jonesboro facility to other locations within its network.

In a statement, Butterball CEO Jay Jandrain said the decision was made after significant consideration. 

“We have thought long and hard about this difficult choice,” Jandrain stated.

“Our priority now is to support our employees as they plan the next steps in their careers.”

Affected workers will receive medical benefits through the end of February 2025 and severance packages, the company confirmed.

Butterball reported a US$6 million net income for the third quarter of 2024, marking a sharp 70% decrease from the same period last year. 

The company’s majority owner, Seaboard Corporation, which holds a 52.5% stake, attributed the drop in earnings to low turkey prices and subdued market demand.

The broader poultry industry is also feeling the strain. 

Hormel Foods, owner of the Jennie-O Turkey brand, has cited ongoing pricing challenges and market instability linked to bird flu as factors hindering its operations. 

Hormel anticipates these difficulties will persist through 2025.

Other major agricultural companies, including Tyson Foods, Cargill, and Deere & Co., have also announced layoffs and plant closures in recent months as the agricultural sector experiences a downturn.

In addition to the Jonesboro facility, Butterball operates plants in Huntsville and Ozark, Arkansas, along with feed mills in Alix, Altus, and Yellville.

The closure is part of broader efforts by poultry producers to address financial pressures as low turkey prices and reduced demand weigh heavily on earnings across the sector.

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