By Ryan Hanrahan
Reuters’ Karl Plume reported that “U.S. agribusiness Cargill will permanently close its beef processing facility in Milwaukee, Wisconsin, and eliminate 221 jobs, according to a filing with the state, the latest U.S. beef plant to be shuttered 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,” Plume reported. “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,” Plume reported. “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.”
Bloomberg’s Michael Hirtzer and Ilena Peng reported that “the move comes as the US cattle herd has dropped to the lowest in 75 years, leaving meatpackers with fewer animals to keep plants running. Other companies have announced closures: Rival beef producer Tyson Foods Inc. earlier this year shut a cattle slaughtering plant in Nebraska and reduced operations at a Texas facility, while JBS NV said it would close a meat-processing plant in California.”
“An industry turnaround isn’t expected soon, as there are few signs of a much-anticipated rebuilding of US herds,” Hirtzer and Peng reported. “The situation has been exacerbated by an ongoing halt to shipments of live cattle from Mexico, where the deadly New World screwworm has infected animals. Prices for steers jumped about 20% from 2024 to 2025, with a further increase projected for this year, according to the US Department of Agriculture.”
Source : illinois.edu