
Tyson Foods has announced another corporate retraction with the closing of three meat processing plants at a loss of some 950 jobs.
Tyson, America’s largest meat producer which successfully bought out Hillshire Brands in June, announced the closings saying that its shutdown plans were in the works before it purchased its new holdings.
The three plants were on the bubble due to changing consumer needs as well as logistical and economic reasons, Tyson reported.
According to Reuters, two plants, the Buffalo, New York and Santa Teresa, New Mexico facilities, are being shuttered because they are now too far from their base of raw materials and costs of shipping have mounted, the company said. As to the third plant, the Cherokee, Iowa factory was too old to make sense to upgrade.
Reuters also reported that another factor was the contraction of the beef market. “The number of beef cattle in the United States is at its lowest level in 63 years due to severe droughts, reducing the amount of meat available to process.”
The Cherokee factory had also run afoul of the U.S. Department of Labor’s Occupational Safety and Health Administration that cited the plant for safety hazards. Tyson eventually paid $103,000 in fines as a result.
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