Cargill to close Wisconsin beef plant, amid rising costs for meatpackers
The Cargill Meat Solutions facility will stop production around mid-April and fully close around the end of May, a notice filed by Cargill with the Wisconsin Department of Workforce Development said. The plant specializes in fresh beef, ground beef, and value-added products but does not slaughter cattle.
Cargill said the move was made "to better align our portfolio with current customer demand and prioritize investments," adding that ground beef production will shift to its other North American facilities with no impact on its consumer contracts. The company operates seven other facilities in the state and some of the employees affected are expected to move to one in nearby Butler, Wisconsin.
The Milwaukee plant closure comes after rival meatpackers JBS and Tyson Foods announced they were shuttering beef plants late last year.
Beef prices are hovering near record highs due to strong demand and reduced supply. U.S. President Donald Trump on Friday signed a proclamation to hike low-tariff imports of Argentine beef.
U.S. beef packers have been losing money as tight supplies of cattle forced them to pay more for the livestock they slaughter and process into hamburgers and steaks.
The U.S. cattle herd has dropped to the lowest level in nearly 75 years due to persistent drought that dried up grazing pastures. A halt on U.S. imports of Mexican cattle tightened supplies further, as Washington seeks to keep out a flesh-eating parasite.
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