Smithfield, Virginia-based Smithfield Foods Inc. will cease all harvest and processing operations in Vernon, California, in early 2023 and, at the same time, align its hog production system by reducing its sow herd in its Western region.
The company will decrease its sow herd in Utah and is exploring strategic options to exit its farms in Arizona and California. Smithfield harvests company-owned hogs in Vernon and will service customers in California with its Farmer John brand and other brands and products from existing facilities in the Midwest.
Smithfield is taking these steps due to the escalating cost of doing business in California.
Smithfield is providing transition assistance to all impacted employees, including relocation options to other company facilities and farms as well as retention incentives to ensure business continuity until early next year. The company reached an agreement this week with the United Food and Commercial Workers International Union, the International Brotherhood of Teamsters and the International Union of Operating Engineers as part of its plan to close the facility.
“We are grateful to our team members in the Western region for their dedication and invaluable contributions to our mission. We are committed to providing financial and other transition assistance to employees impacted by this difficult decision,” said Brady Stewart, Smithfield COO.
Smithfield provides more than 40,000 American jobs at 46 facilities and nearly 500 company-owned farms.
Smithfield Foods Inc. is an American food company with agricultural roots and a global reach. It employs more than 60,000 people and has become carbon negative in its U.S. company-owned operations. The company also plans to reduce GHG emissions 30 percent across the entire U.S. value chain by 2030. Smithfield brands includes names such as Smithfield, Eckrich and Nathan’s Famous.
For more information, visit smithfieldfoods.com.