Cargill to close Wisconsin beef plant, cut 221 jobs

CHICAGO, Feb 12 (Reuters) – U.S. agribusiness Cargill will permanently close its beef processing plant in Milwaukee, Wisconsin, and lay off 221 people, according to a filing filed with the state. The last U.S. beef plant to close due to rising costs for meatpackers.

In Cargill’s notice to the Wisconsin Department of Workforce Development, it was stated that the Cargill Meat Solutions facility will cease production in mid-April and close completely by the end of May. The facility specializes in fresh beef, ground meat and value-added products, but does not slaughter cattle.

Cargill said the move was made “to better align our portfolio with current customer demand and prioritize investments,” adding that ground beef production will shift to other North American facilities without affecting consumer contracts. The company has seven other facilities in the state, and some of the affected employees are expected to be moved to a facility in nearby Butler, Wisconsin. The Milwaukee plant closure comes after rival meatpackers JBS and Tyson Foods announced late last year that they would close their beef plants. Beef prices remain near record levels due to strong demand and declining supply. U.S. President Donald Trump signed a proclamation Friday that will increase low-tariff imports of Argentinian beef.

U.S. beef packers are losing money because cattle supplies are tight, forcing them to pay more for the animals they slaughter and process into hamburgers and steaks. The U.S. cattle herd has fallen to its lowest level in nearly 75 years due to a persistent drought that has dried out pastures. A halt on U.S. imports of Mexican beef has further tightened supply as Washington tries to keep a flesh-eating parasite at bay.

(Reporting by Karl Plume, Chicago Editing by Rod Nickel)