Tyson Foods Experiencing Reduced Demand, Permanently Shutting Down Its Perry Plant Affecting 1,276 Workers

By Moon Harper

Mar 12, 2024 01:41 AM EDT

Tyson Foods, headquartered in Arkansas, has announced the permanent closure of its pork packing facility in Perry, resulting in the loss of jobs for the 1,276 employees.

In an email on Monday, a company spokesperson announced the difficult decision to permanently close their pork facility in Perry, Iowa, following careful consideration.

Perry, a community of approximately 7,930 residents, has suffered another significant setback this year, in addition to grappling with a school shooting in January that resulted in three fatalities and six injuries.

Tyson's Part in Perry's Economy

The pork plant in Perry, Iowa, which employed around 1,200 workers in a town with roughly 8,200 residents near Des Moines, is scheduled for closure on June 28, described by Cavanaugh as a significant setback for the community, being the largest employer in the area.

Mayor Dirk Cavanaugh emphasized the Tyson plant's importance to Perry's economy, noting that relocating to nearby plants may not be feasible for workers to remain in the area. According to Cavanaugh, the closure is expected by late June. While not all Tyson employees reside in Perry, their patronage supports local businesses. Cavanaugh expressed his commitment to collaborating with officials to find a new employer for the plant space.

After enjoying substantial profits due to soaring meat prices during the COVID-19 pandemic, the company now faces a downturn and reduced demand for certain products. This has led Tyson to close six chicken plants and implement layoffs for corporate staff over the past year in the United States.

Tyson's Support for Affected Workers

After thorough deliberation, Tyson permanently shut down its pork facility in Perry, Iowa, underscoring its commitment to enhancing operational efficiency to better meet customers' needs. Iowa remains integral to Tyson Foods, employing over 9,000 team members across various facilities in the state.

Tyson employees, the Perry community, and Iowa pork producers will receive support from the state during and after the plant closure. The Iowa Economic Development Authority and Iowa Workforce Development are actively assisting. The state is prepared to help affected employees secure new jobs locally. IowaWorks.gov currently lists over 60,000 job openings, and the Iowa Workforce Development offers personalized career counseling to those seeking employment, said Governor Kim Reynolds in response to the announced closure.

Tyson Pork's Downturn

Tyson's pork division experienced an adjusted operating deficit of one hundred twenty-eight million dollars in the fiscal year ending September 30, contrasting with a profit of one hundred ninety-eight million dollars the prior year. Sales volumes declined by 2.2%, accompanied by a 7.9% decrease in average prices.

As Steve Meyer, chief livestock economist at Ever.Ag stated that the Perry plant processes about 9,000 pigs daily, constituting below 2% of the pork production in the U.S.

Smithfield Foods announced the termination of contracts with 26 hog farms in Utah in December, citing an oversupply of pork in the industry and decreased consumer demand. In October, Smithfield disclosed plans to close a pork plant in North Carolina following the confirmation of the closure of 35 hog farm sites in Missouri.