Cargill will close a turkey-processing site in the US this August.
The agri-food giant plans to shut down its facility in Springdale, Arkansas, at the beginning of the month.
In an official statement, Cargill announced that it will relocate “much of Springdale’s production” to other turkey-processing plants located in Missouri and Virginia.
“This was not an easy decision, given the impact on the approximately 1,100 employees and local producers. However, it is essential for the future of our turkey business. Turkey remains a critical part of Cargill’s protein portfolio,” the statement highlighted.
The Springdale facility is known for producing fresh and frozen turkey products, including bone-in turkey breasts and case-ready items.
Earlier this month, Cargill reached a financial settlement related to allegations of price-fixing in the turkey industry, though the company did not admit any wrongdoing.
The case, heard in the US District Court of the Northern Illinois Eastern Division, saw Cargill proposing a settlement of $32.5 million to be allocated into an escrow account.
Court documents indicated that direct purchaser plaintiffs (DPP) accused Cargill and its “co-conspirators” of conspiring to “fix, maintain, and inflate the price of turkey in the United States by exchanging competitively sensitive information.”
Notably, one of Cargill’s co-conspirators, Tyson Foods, had also settled with the same court for $4.6 million in 2021.
Additionally, in December, Cargill announced plans to reduce its global workforce by 5%, impacting nearly 8,000 jobs based on data from its recent annual report.
The world’s largest agricultural products company stated that the reductions are part of its “long-term strategy,” although Cargill has remained vague regarding the specifics behind the job eliminations.“To enhance Cargill’s impact, we must realign our talent and resources to align with our strategy,” the privately-owned meat processor asserted.
In 2024, Cargill reorganized its operations from five divisions into three: food enterprise, agriculture and trading, and a “specialized portfolio,” under CEO Brian Sikes.
The company’s 2024 annual report indicated a global employee count of 160,000 and revenue of $160 billion, down from $177 billion the previous year.
