Tyson Foods Shuts Down Pork Plant, Jobs Lost

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.