USA – Cargill is shutting down its turkey processing plant in Springdale, Arkansas, affecting around 1,000 workers and 100 contract growers.
The company intends to move most of the facility’s operations to its turkey plants in Missouri and Virginia to ensure customers continue receiving their supplies.
Cargill Global External Communications Senior Manager Chuck Miller confirmed the move, stating that the company remains committed to fulfilling contracts with growers and will continue processing turkey and other proteins across more than 40 facilities in the United States and Canada.
Data from WATT Global Media’s Top Poultry Company database shows that Cargill Protein produced about 793 million live pounds of turkey in 2024.
The closure comes at a time when Cargill is also implementing significant job cuts worldwide in response to declining profits.
In December 2024, the company announced plans to reduce its workforce by approximately 8,000 positions, representing 5% of its total staff.
Cargill attributed the decision to financial struggles, reporting US$160 billion in revenue for the 2024 fiscal year, a 10% decrease compared to the previous year.
The company stated that the restructuring is necessary to align its workforce and resources with its long-term strategy.
Cargill acknowledged the impact of the layoffs and said it would support employees during the transition.
This comes a few weeks after it was reported that the company had agreed to a financial settlement of US$32.5 million in a lawsuit alleging turkey price-fixing, although the company has not admitted to any wrongdoing.
The settlement, described as “proposed,” was disclosed in court documents filed in the US District Court for the Northern District of Illinois Eastern Division.
The lawsuit, initiated by direct purchaser plaintiffs (DPPs), accused Cargill and several other companies of colluding to manipulate turkey prices in the United States.
According to the court filing, the plaintiffs alleged that Cargill and its alleged co-conspirators exchanged sensitive competitive information to coordinate and inflate prices.
The settlement funds will be deposited into an escrow account, the document states. It also noted this is the second DPP settlement related to the case.
The first settlement, involving Tyson Foods, amounted to US$4.6 million and was finalized in February 2022.
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