Smithfield Foods is closing 35 hog farms in northern Missouri, affecting 92 employees. The company says the closures are due to challenging market conditions in the U.S. pork segment.
Murphy Brown, LLC, a division of Smithfield Foods, Inc., notified state officials last week that it is reducing its hog farming operations across the state. The layoffs will take effect on October 8th.
The affected farms are located in Putnam and Mercer counties. 13 sites in Newtown, 12 in Lucerne and 10 in Princeton will permanently close.
No union represents the employees at any of the sites. All those affected have been offered the opportunity to relocate to another Smithfield facility but will not be able to bump into or displace any other employee.
The closures come as the pork industry is facing numerous challenges, including rising costs and declining demand. In April, China's WH Group, the owner of Smithfield Foods, said it expected a 56% drop in its first quarter 2023 profit outlook. The company cited challenging market conditions in the U.S. pork segment as the reason for the decline.
The closure of 35 hog farms in northern Missouri is a sign of the tough times facing the pork industry. It remains to be seen how many other farms will be forced to close in the coming months.
Photo Credit: Smithfield Foods
Categories: Missouri, Livestock, Hogs