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Butterball plans to close its processing plant in Jonesboro, Arkansas, next year as falling turkey prices hurt the poultry producer’s profits.
The company said it filed a WARN filing on Dec. 4 and notified about 180 employees of layoffs. Butterball plans to move production from northeast Arkansas to other facilities within its manufacturing network, according to the statement.
“We thought long and hard about this difficult decision,” Butterball CEO Jay Zandrain told reporters. “We are committed to helping our team members decide the next steps in their careers.”
Butterball reported net income of $6 million for the quarter ending in September, down 70% from the same period last year. Seaboard, which owns a 52.5% stake in Butterball, attributed the results to weak sales due to low market prices.
Low turkey prices and low demand have also affected rival Hormel, owner of the Jennie-O Turkey brand. Hormel said in its most recent earnings report that it expects pricing pressure. Continue until 2025And the volatility associated with avian flu has made it more difficult for companies to execute adequate supply sizing plans.
Butterball has operated the Jonesboro further processing plant for nearly 19 years, Arkansas news outlets said. Talk Business & Politics reported.. The company also has locations in Huntsville and Ozark and operates feed mills in Alix, Altus and Yellville.
The Jonesboro plant will remain open until Feb. 3, 2025, and workers will receive health care and retirement benefits through the end of the month, Butterball said in a statement.
Tyson Foods, Cargill and Deere & Co. also announced plant closures and layoffs as widespread declines in agricultural markets impacted corporate profits across the industry.
