JBS, the world’s largest meat company, announced it will permanently close its Swift Beef Company facility in Riverside, California, just outside Los Angeles.
The closure is scheduled for Feb. 2 and will eliminate 374 jobs, as stated in a notice from California’s Employment Development Department.
Driving the news: The decision is driven by low U.S. cattle supplies, which have raised costs for meatpackers nationwide.
- Beef prices reached record highs this year after drought conditions led ranchers to reduce the U.S. cattle herd to its lowest level in decades.
- A government halt on U.S. imports of Mexican cattle further tightened domestic supplies, in response to concerns about a flesh-eating parasite.
- President Donald Trump has voiced efforts to lower beef prices for consumers, accusing major meatpacking companies of manipulating the market to drive up prices.
- Meatpacking companies are paying more for cattle as supplies dwindle, increasing costs for producing hamburgers and steaks.
The big picture: Workers at the Riverside facility process beef for grocery stores but do not slaughter cattle on-site.
- JBS described the closure as “part of a strategic initiative to optimize its value-added and case-ready business and simplify operations across its network.”
What they’re saying: In a statement, JBS said it “remains focused on delivering high-quality products and dependable service while strengthening its operational footprint to meet evolving market demands.”…