US pork processor Smithfield Foods is planning to close 35 hog farm sites in Missouri, leading to the layoff of 92 employees in October.
The meat group has filed a Missouri Worker Adjustment and Retraining Notification Act (WARN) notice, confirming the impact on 13 sites in Newtown, 12 in Lucerne, and 10 in Princeton, as reported by Reuters.
In the notice, Murphy-Brown LLC, a division of Smithfield Foods, stated that it is “reducing its hog farming operations” in the state and therefore has to reduce its workforce accordingly.
A Smithfield spokesperson told Reuters on Monday that the layoffs only affect their Missouri hog production operations.
All employees are set to be affected on 8 October, as stated in the notice. However, they have been offered relocation opportunities.
Earlier this year, WH Group, the owner of Smithfield, reported a 43.1% drop in its first-quarter operating profit to $365m. The profit attributable to owners of the company also decreased by 55.9% to $174m. In a statement, WH Group attributed these declines to elevated hog raising costs and softer consumer demand for pork.
Smithfield’s decision to close hog farm sites comes shortly after Tyson Foods announced the closure of four chicken plants in the US, with two in Missouri, one in Arkansas, and one in Indiana. Tyson estimated a total charge of $300m to $400m from these closures.
In an analyst call following the closure announcement, Tyson expressed the possibility of considering further plant closures due to ongoing pressures in its chicken, beef, and pork operations.
