Smithfield: California Plant Too Expensive to Run

June 14, 2022
Citing the high costs of doing business in California, Smithfield Foods has announced that it will be closing its pork processing plant in Vernon, Calif.

Citing the high costs of doing business in California, Smithfield Foods has announced that it will be closing its pork processing plant in Vernon, Calif.

The company says that it will close the plant in Vernon, a Los Angeles suburb, early next year. The move, which will eliminate some 1,800 jobs, was done in consultation with the unions representing the workers.

A company statement cited the high cost of doing business in California as the primary reason for the decision. These include utilities, taxes, transportation and labor. In addition, Smithfield is cutting back on its hog herd in the Western U.S. in general, and is looking into selling off its farms in California and Arizona.

"We are grateful to our team members in the Western region for their dedication and invaluable contributions to our mission,” COO Brady Stewart said in the statement. “We are committed to providing financial and other transition assistance to employees impacted by this difficult decision."

Sponsored Recommendations

Learn About: Micro Motion™ 4700 Config I/O Coriolis Transmitter

An Advanced Transmitter that Expands Connectivity

Managing and Reducing Methane Emission in Upstream Oil & Gas

Measurement Instrumentation for reducing emissions, improving efficiency and ensuring safety.

Rosemount™ 625IR Fixed Gas Detector (Video)

See how Rosemount™ 625IR Fixed Gas Detector helps keep workers safe with ultra-fast response times to detect hydrocarbon gases before they can create dangerous situations.

Get Hands-On Training in Emerson's Interactive Plant Environment

Enhance the training experience and increase retention by training hands-on in Emerson's Interactive Plant Environment. Build skills here so you have them where and when it matters...