Cargill, Foster Farms to shut down poultry plants as demand declines
The closures will result in over 1,600 job losses as turkey prices drop and bird flu continues to affect farms.
USA – Cargill and Foster Farms are shutting down turkey processing plants due to reduced consumer demand and financial pressures in the poultry industry.
The closures will lead to layoffs of more than 1,600 employees as producers struggle with falling turkey prices and the ongoing impact of avian influenza on farm operations.
According to the U.S. Department of Agriculture (USDA), the average wholesale price of frozen whole hen turkeys in 2024 is US$0.94 (94 cents) per pound, reflecting a nearly 33% drop compared to the previous year.
At the same time, bird flu has significantly reduced the turkey population, with more than 14.2 million birds lost since 2022, bringing the national flock to its lowest level since 1985, based on an analysis from the American Farm Bureau Federation.
Cargill plans to transfer turkey production from its Springdale, Arkansas, facility to other plants in Missouri and Virginia.
A company spokesperson stated that despite challenges in the turkey market, the protein remains an important part of Cargill’s overall business.
Foster Farms will shut down its fresh turkey processing facility in Turlock, California, but will continue operating its fully cooked turkey plant in the same area.
The company emphasized that no other Foster Farms locations would be affected and that it remains committed to its presence in California’s Central Valley.
Foster Farms also announced that affected employees would have opportunities to transfer to other positions, with job placement and support services available.
Cargill has not provided details on severance packages, job assistance, or other benefits for workers at its closing facility.
Foster Farms CEO Jayson Penn acknowledged the impact on employees, expressing appreciation for their dedication and promising support during the transition.
Impact on Farmers and Local Economy
The shutdowns will also affect contract farmers who raise turkeys for these processing plants.
Arkansas ranks among the top turkey-producing states, following Minnesota and North Carolina, according to the USDA.
Cargill stated that it will continue to meet its existing contracts with growers and maintain turkey production at over 40 processing facilities across the U.S. and Canada.
Springdale Chamber of Commerce President Bill Rogers told local news station 40/29 News that contract farmers are a key part of the poultry industry, which is why the Cargill facility will remain operational until August 1.
He explained that growers are still raising turkeys for the company, influencing the decision to delay the plant closure for several months.
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