The meat processing company JBS⁣ is⁣ closing its packing‌ facility‌ in Riverside, California, resulting in the layoff of 374 employees.The notice of the closure ‌was filed with ‍the California Employment Advancement​ Department on June 13, 2024.

The closure is attributed to a limited cattle supply, contributing to record-high beef prices experienced throughout 2024. The Riverside facility, operated under ⁣JBS subsidiary Swift Beef Co., focuses on preparing meat for ⁤retail sale and does *not* ⁤conduct animal slaughter.

Impact on Employees and Relocation Options

JBS spokesperson nikki Richardson stated⁣ that affected employees will be offered opportunities at other JBS⁢ facilities, including relocation assistance. ‌Those ‌who decline relocation will recieve a 60-day⁣ notice period before​ their employment is terminated. The company is working to support employees through this transition.

The closure adds to a growing trend of disruptions‌ in the meatpacking industry. In 2021,‍ JBS experienced a important cyberattack, paying an $11 million ransom to​ restore operations. While unrelated to the current closure, this incident highlights the vulnerabilities within the food supply chain.

Factors Driving‍ Beef Price Increases

The surge in beef‍ prices in 2024 is a complex issue​ stemming from multiple factors impacting cattle supply.These include:

• Drought Conditions: Prolonged drought across key pastureland has forced ranchers to‌ reduce herd ​sizes due ​to insufficient grazing.
• Screwworm Infestation: an outbreak of⁢ screwworm, a parasitic fly, led to ⁤a temporary halt in U.S. imports of Mexican cattle, further constricting supply.
• Herd Reduction: Ranchers proactively reduced herd sizes in anticipation of higher ⁤feed costs and uncertain ⁣market ‍conditions.

According to the ‌ Wall Street Journal, Tyson Foods also announced plant closures in response to similar market pressures, indicating a broader industry trend.

Beef Price trends (2023-2024)