Photo by Tyson on Unsplash
Tyson Foods Shuts Down Pork Plant, Jobs Lost
March 12, 2024
Tyson Foods, the meat company, declared on Monday the permanent closure of its pork plant in Perry, Iowa. This decision will affect approximately 1,200 employees.
During the height of the COVID-19 pandemic, Tyson raked in hefty profits due to surging meat prices. However, facing a subsequent decline and sluggish demand for certain products, the company has been forced to make tough choices. Over the past year, Tyson has shut down six chicken plants across the United States and laid off corporate staff.
The Perry pork plant, a major employer in the region, served as a vital economic hub for the community, according to Mayor Dirk Cavanaugh. With a population of around 8,200, Perry will undoubtedly feel the impact of this closure deeply.
The plant is scheduled to cease operations on June 28, dealing a significant blow to both its workforce and the local economy. Tyson, while not disclosing the exact number of affected employees, is encouraging them to seek opportunities within the company.
In a statement, Tyson said, “While this decision was not easy, it emphasizes our focus to optimize the efficiency of our operations to best serve our customers.”
The financial picture for Tyson’s pork division paints a grim picture. In the fiscal year ending on Sept. 30, the company reported an adjusted operating loss of $128 million, a sharp contrast to the $198 million income from the previous year. Sales volumes dipped by 2.2%, accompanied by a 7.9% decline in average prices.
The Perry plant, responsible for processing approximately 9,000 pigs per day, contributes to nearly 2% of the total U.S. pork production, as noted by Steve Meyer, chief livestock economist for Ever.Ag.
This closure is not an isolated incident within the industry. In December, Smithfield Foods announced the termination of contracts with 26 hog farms in Utah, citing oversupply and weakened consumer demand. Prior to that, Smithfield had confirmed the closure of 35 hog farm sites in Missouri and a pork plant in North Carolina.
Recent News
Planet Fitness Raises Monthly Fee After 26 Years
Planet Fitness, renowned for its budget-friendly $10-a-month membership plan, is embarking on a significant shift by increasing its basic fee for the first time in over two decades. The “classic” membership, allowing access to a single location, will undergo a 50% hike to $15 for new members commencing this summer.
McDonald’s Might Relaunch $5 Meal Deals
McDonald’s is gearing up to launch a $5 meal deal in the US, aiming to attract cost-conscious consumers back into its stores. The proposed deal may include a McChicken or a McDouble, accompanied by fries and a drink.
US Plans Tariffs on Chinese Electric Vehicles
The Biden administration intends to announce new tariffs on Chinese electric vehicles (EVs), possibly reaching 100%, along with additional import taxes on various Chinese goods, including semiconductors. This move aims to safeguard American manufacturing interests, amidst concerns that China’s competitive pricing may undermine US efforts to boost domestic clean energy production.
Columbus Walmart Shutdown Sparks Equipment Auction
A Walmart store in Columbus, Ohio, ceased operations due to underperformance and is now auctioning off its remaining retail equipment and merchandise. Located at 3579 S. High St., the store closed its doors in February, prompting a liquidation auction scheduled for Friday.