CHICAGO, Feb 12 (Reuters) – U.S. agribusiness Cargill will completely shut its beef processing facility in Milwaukee, Wisconsin, and get rid of 221 jobs, in line with a submitting with the state, the newest U.S. beef plant to be shuttered amid rising prices for meatpackers.
The Cargill Meat Options facility will cease manufacturing round mid-April and totally shut across the finish of Could, a discover filed by Cargill with the Wisconsin Division of Workforce Growth mentioned. The plant makes a speciality of recent beef, floor beef, and value-added merchandise however doesn’t slaughter cattle.
Cargill mentioned the transfer was made “to raised align our portfolio with present buyer demand and prioritize investments,” including that floor beef manufacturing will shift to its different North American services with no impression on its client contracts. The corporate operates seven different services within the state and a number of the workers affected are anticipated to maneuver to at least one in close by Butler, Wisconsin. The Milwaukee plant closure comes after rival meatpackers JBS and Tyson Meals introduced they have been shuttering beef crops late final yr. Beef costs are hovering close to report highs because of sturdy demand and diminished provide. U.S. President Donald Trump on Friday signed a proclamation to hike low-tariff imports of Argentine beef.
U.S. beef packers have been dropping cash as tight provides of cattle pressured them to pay extra for the livestock they slaughter and course of into hamburgers and steaks. The U.S. cattle herd has dropped to the bottom stage in practically 75 years because of persistent drought that dried up grazing pastures. A halt on U.S. imports of Mexican cattle tightened provides additional, as Washington seeks to maintain out a flesh-eating parasite.
(Reporting by Karl Plume in Chicago Modifying by Rod Nickel)