American Foods Group Shutters Cimpl Meats Facility in Yankton, South Dakota
American Foods Group plans has shut down the Cimpl Meats meat processing plant in Yankton, S.D., a plant it acquired in 2005 as part of the Rosen acquisition, leading to more than 250 employees losing their jobs, according to local news reports.
Long-term industry changes and “the current unprecedented cattle cycle” were cited by AFG as reasons for the idling of the facility, which had been in operation for 76 years. Slaughter operations at the facility were halted on Saturday, March 15, and employees were formally notified on Monday morning that the plant would be closing.
In a release from AFG sent to Food Processing, Louie Kohlbeck, president of American Foods Group's Fresh Meats Division, said that "team members from our other locations are on-site to provide guidance and discuss relocation opportunities. In addition to offering affected employees opportunities at other AFG facilities, we plan to provide continued pay and benefits during the transition."
Additionally, the company noted that its other facilities will remain operational, and supply chains will not be interrupted for its customers. On the cattle procurement side, AFG expects no interruptions either, as it will continue to accept and divert cattle to other locations.
Cimpl Packing Co. was founded in 1949 and eventually sold to Rosen Meat Group in 1988 — which was acquired by AFG in 2005, as previously mentioned.
