Friday, November 10, 2023

Friday November 10 Ag New

 2024 Nebraska crop budgets — a mixed review with some costs higher, some lower
Glennis McClure Extension Educator, Farm and Ranch Management Analyst


The budgets are grouped by crop and provided currently in multiple formats including Excel and printable pdf files using the Excel format and the Agricultural Budget Calculator (ABC) program. Detailed information on how the budgets were developed, along with machinery and ownership costs, general variables, and material and service pricing are included in the introductory pages of the pdf file. Files are available at cap.unl.edu/cropbudgets.

2024 Crop Budgets

While field operation costs are projected higher for the 2024 Nebraska crop enterprises, some material input costs are lower than were projected for 2023.  One driving force on lower cost projections for 2024 is 20% to 40% less on fertilizer prices is factored in on many budgets, and five pounds less nitrogen fertilizer was entered for a majority of the corn budgets due to continued improvement of application practices. Cost scenarios for individual producers can vary based on their timing of input purchases and price variabilities.  The 84 Nebraska crop budgets are now available online in three formats with a complete 96-page pdf report, an Excel file, along with links to all of the budget reports created using the Agricultural Budget Calculator (ABC) program where enterprise budget data can be downloaded into user accounts and then modified for individual farm operations.

Financial risk exposure associated with yield, input prices, market changes or other factors should be measured. It is important to develop cost of production baseline information to utilize market opportunities as they are available, consider input decisions, and make timely risk management decisions. Knowing projected enterprise costs can provide confidence in decision making.  

While there are fifteen different crops included in the Nebraska crop budgets ranging from alfalfa to peas and millet to sugar beets, sunflowers, and cover crops, included here are comments and figures on three widely grown Nebraska crops, corn, wheat, and soybeans. Estimated economic costs per bushel for 2024 corn and wheat are three to four percent lower than 2023 projections were a year ago. Cash costs per bushel reflect a wider difference over a year ago with fuel and fertilizer prices down. With land values across Nebraska 14% higher and machinery prices higher once again, the differences in the average economic (or total) costs per bushel for corn and wheat are modest. Since the budgets for soybean production don’t include fertilizer inputs, there are smaller cash cost differences between this year and last. Economic (total) costs per bushel on soybeans average $0.39 more on dryland and $0.46 more on irrigated land per bushel over a year ago. Tables 1 – 3 below provide a cost of production comparison summary of budgets for corn, soybeans, and wheat for 2023 to 2024 (click here to see those https://cap.unl.edu/crops/2024-nebraska-crop-budgets-%E2%80%94-mixed-review-some-costs-higher-some-lower).

Budgets Should be Modified Based on Operations and Input Price Changes

Prices for materials and services for the 2024 crop budgets were based on information gathered in the August to October 2023 timeframe.  As we head into 2024, we cannot accurately predict the movement of material and service prices, therefore, it is highly recommended that producers utilize the Nebraska budgets as a guide to prepare their own enterprise budgets, updating expense figures as necessary.

In the 2024 crop budgets, fertilizer costs are generally figured at $0.60 per pound of nitrogen. Diesel fuel price has been assumed at $3.45 per gallon for 2024, with 15% of the fuel cost added to the budget for oil and lube costs. Pesticide prices generally reflect slightly higher prices over the last year as do operating interest rates. A complete list of material input prices is shown in the budget.

Items to Note regarding the Nebraska Crop Budgets

The 2024 Nebraska budgets are based on a projected yield to calculate both a total economic and a cash cost per unit of production. Cash costs do not include the ownership cost of machinery and equipment used in field operations, nor a real estate opportunity cost when land is owned. Conversely, economic costs include an opportunity cost of land and equipment, plus depreciation costs of machinery and equipment.

Land values from the 22023 Nebraska Farm Real Estate Report are used in the budgets to calculate land ownership opportunity costs. If an operator rents crop ground, land value and real estate taxes can be eliminated from the budget and replaced by the amount paid for cash rent. In this scenario, cash costs will increase due to the added cash rent expenses.

In addition to depreciation and ownership costs of machinery and equipment, field operation costs include labor, fuel, and repair expenses. Repairs and depreciation expenses are figured using the Society of Agricultural Engineers formulas and equations for power units and implements. The 2024 labor rate remained the same as last year’s figure of $25 per hour. Labor costs for each operation are calculated using machinery accomplishment rates and are adjusted for the additional time required for getting machinery ready, adjusting machinery, and handling fertilizer and crop inputs.



Next CAP Webinar: Income Tax Updates for Farmers and Ranchers

Nov. 16 at noon CT

Nebraska Farm Business, Inc., Director Tina Barrett will cover tax considerations that farmers and ranchers should be thinking about this year as we get closer to closing out another year. Topics covered will include crop insurance, deferral options for livestock sales, potential law changes on the horizon and more.

Register at https://cap.unl.edu/webinars.  



Student Creates "Chili Roll" at NYBLS, Now an Engler Project


A warm bowl of chili and a cinnamon roll on the side seems to be a staple of Midwestern meals, especially in cooler weather. Who would have thought to experiment with putting the chili inside of the cinnamon roll though? A young inventor at the Nebraska Youth Beef Leadership Symposium did.

Alexa Carter of Rising City, Nebraska, said the idea came to her when she was explaining food items that are unique to Nebraska to another student at NYBLS who was from Kentucky.

“We were trying to explain the Runza,” said Carter. “Then we went into explaining the chili and cinnamon roll combo. Then I got the idea, what if we combine the two.”

Carter and her team created and coined the term, “chili roll.” They then presented it to a panel of judges, who chose their product as the winning creation and presentation at the 2022 symposium. UNL College of Agriculture and Natural Resources Dean Tiffany Heng-Moss was one of the judges and reached out to Carter about her product.

“I emailed the dean, and we met in January,” said Carter. “I also met with Tom Field who oversees Engler, and the head caterer at UNL. I knew I wanted to go to UNL but that sealed the deal.”

Now Carter is a freshman at UNL majoring in agricultural education and is involved in the Engler Entrepreneurship Program. She is working out the details and recipe of her chili roll and what selling it will look like.

“I have gotten a lot of feedback,” said Carter. “It would be a very good concession or tailgate food. The goal is to have it at Husker sporting events by next fall.”

When it comes to entrepreneurship, Carter has more ideas outside of the food industry too. She says that she did not have much background in cooking or food service before the NYBLS competition.

“My sister is the cook in the house and was also at the contest, so she was kind of upset with me when I won,” joked Carter. “I seem to have interests in doing things I have no experience in. I’ve started a craft business, I’ve done a quick pitch competition for healthcare. I just like learning.”

For more information and to learn more about the Nebraska Beef Council, visit www.nebeef.org.



Greving Reappointed to the United Soybean Board


The U.S. Department of Agriculture (USDA) has reappointed one Nebraska farmer to serve on the United Soybean Board (USB). Greg Greving of Chapman will continue to serve on the board of 77 farmer directors across the country.

Greving, a seasoned soybean farmer with over 40 years of experience in soybean production, is set to commence another three-year term. The newly appointed and reappointed farmer-leaders will be sworn in for service during the USB December Meeting in St. Charles, Mo.

"I am honored to continue representing Nebraska on the United Soybean Board," said Greving. "With a background in international marketing for U.S. Soy, I am committed to leveraging this experience to enhance the profitability of U.S. soybean farmers. Serving soybean farmers, both in Nebraska and across the U.S., is a responsibility I take with great pride."

In addition to his wealth of experience in soybean production, Greving brings a history of dedicated service to the soybean checkoff, having previously served on the Nebraska Soybean Board from 2001 to 2013 and USB from 2013 to 2016, and 2020 to 2023.

“Each of these farmer-leaders will have a significant impact on the soy checkoff’s ability to build demand, enhance reputation and increase the resilience of our U.S. soybean crop,” said Meagan Kaiser, USB Chair and farmer from Missouri. “I’m proud of our farmer-led board that volunteers their time to look ahead and think big picture to ensure U.S. Soy remains a leader in forging partnerships to deliver sustainable solutions to every life, every day.”

Greving will continue to serve alongside Ed Lammers, Tony Johanson, and Victor Bohuslavsky as one of four Nebraska soybean farmers representing the state's interests on USB.

To learn more about the work of the soy checkoff, please visit unitedsoybean.org.



ISU Feedlot Forum 2024 Will Focus on Adapting to Industry Changes


 There is no doubt the beef industry is changing, yet the bigger question is how feedlot producers can adapt and move forward. Beth Doran, Iowa State University Extension and Outreach beef specialist for northwest Iowa, said Feedlot Forum 2024 is designed to help producers transition through a variety of big changes.

"For example, the supply of feeder cattle includes more beef-dairy cross cattle, and implants are regulated for specific production phases," she said. "Market transparency continues to be cloudy, and a dramatically reduced cow herd has increased prices for animals throughout the whole supply chain."Beef steer.

This popular annual program is a grassroots collaboration of ISU Extension and Outreach; the Iowa Cattlemen’s Association; and the Lyon County, Plymouth County, and Sioux County Cattlemen’s Associations. Feedlot Forum 2024 will be held Jan. 16, 2024, from 8:45 a.m. to 2:45 p.m. at the Terrace View Event Center in Sioux Center.

Keynote speaker will be Mike Murphy, chief operating officer for CattleFax. He has been involved with all facets of CattleFax – feedlot, stocker and cow-calf – as well as preparing feed grain analysis. His focus is risk management for the beef, cattle and grain sectors. "When will the Cattle Industry Expand?" is the topic of his presentation.

Other perks at Feedlot Forum 2024 include brief updates on industry leadership, a trade show featuring 19 industry-leading businesses and a New York steak dinner.

The event flyer has agenda details https://www.iowabeefcenter.org/events/FeedlotForum2024.pdf, list of sponsors and registration information. Doran encourages cattle producers to put the date on their calendar now for this information-packed program in mid-January.

For more information, contact Doran at doranb@iastate.edu or 712-737-4230.



Ag stats reveal challenges and resilience of Iowa's family farms


Data from the 2023 Iowa Ag Stats, compiled by Iowa's National Agricultural Statistics Service (NASS) and released by Iowa Farm Bureau, reveals record-high farm production costs, offset by elevated grain prices.

Production prices and land values continue to climb

In 2022, Iowa farms faced record-high production costs exceeding $420,000, while soybean and corn prices rose to $13.40 and $6.10 per bushel in the 2021-2022 marketing year, up $2.30 and $1.46, respectively, from 2020-2021. “Strong grain prices softened the blow of high crop production input expenditures,” says Dr. Christopher Pudenz, Iowa Farm Bureau economist. “However, national net farm income is estimated to fall by 23% in 2023, in part because grain prices have weakened, and input prices have been slower to react to market changes.”

Cropland values hit record levels, averaging $10,100 per acre in 2023, up from $9,350 in 2022. “Although high land values improve farm balance sheets,” adds Pudenz. “It’s definitely a concern for farmers wanting to expand their family farms and why we see younger generations tapping into more direct-to-consumer, niche markets that can be successful on smaller parcels of land.”

Livestock industry fluctuates amid disease and drought

NASS data reflects the impact high pathogenic avian influenza had on Iowa’s egg and poultry farms in 2022 with the lowest flock numbers recorded since the 2015 outbreak. Between March and April of 2022, egg production decreased from more than 1.04 billion eggs to 853 million before resurging to 1.03 billion by October. Despite the return to normal levels, Iowa poultry and turkey farmers remain diligent in their biosecurity efforts as migratory birds continue to increase disease risk.

The number of cattle on feed in Iowa was the same on Jan. 1, 2022, as in 2021, but it was the smallest inventory since 2005. Drought depleting feed resources across the country caused many cow-calf producers to reduce their herds, resulting in fewer calves and feeder cattle available for Iowa farmers to purchase. Pudenz says these numbers also reflect the natural cattle cycle. “Cattle inventories follow supply and demand,” he says. “We have been in a cattle cycle trough, so inventories are low. But strong cattle prices are yielding positive returns for Iowa farmers with cattle on feed.”

Hog numbers remained relatively stable in 2022, with Iowa farmers raising 32% of the nation’s pigs. However, high input prices and lackluster domestic pork demand created negative hog returns toward the end of 2022, says Pudenz, with wean-to-finish pig operations in Iowa losing an estimated average of $40 per animal for pigs purchased in November 2022 and sold in May 2023.

Iowa farmers remain resilient, seek sustainable solutions

“Despite the many challenges farmers faced in 2022, these men and women continue to find ways to keep the family farm moving forward,” says Brent Johnson, Iowa Farm Bureau president. “They’re using data, technology and innovation at rates never seen before to reduce inputs, implement practices that help create resilient soils for crops and find niche markets that add value to their bottom line.”

Additionally, NASS data indicates growth in specialty markets. From 2022 to 2023, the state saw 5,000 more meat goats, 2,000 more sheep and lambs and 35,800 more pounds of honey.

The $12 stats book can be ordered from the Marketing and Communications Division, Iowa Farm Bureau, 5400 University Avenue, West Des Moines, Iowa 50266 with checks payable to Iowa Farm Bureau.



Highly Pathogenic Avian Influenza Cases Confirmed in Taylor and Jones Counties


The Iowa Department of Agriculture and Land Stewardship and the United States Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) have confirmed positive cases of Highly Pathogenic Avian Influenza (HPAI) in Taylor and Jones Counties.

The affected site in Taylor County is a flock of commercial layer chickens. The affected site in Jones County is a mixed species backyard flock.

Commercial and backyard flock owners should prevent contact between their birds and wild birds. Sick birds or unusual deaths among birds should be immediately reported to state or federal officials. Biosecurity resources and best practices are available on the Iowa Department of Agriculture and Land Stewardship website. If producers suspect signs of HPAI in their flocks, they should contact their veterinarian immediately. Possible cases must also be reported to the Iowa Department of Agriculture and Land Stewardship at (515) 281-5305.

According to the U.S. Centers for Disease Control and Prevention, the recent HPAI detections in birds do not present a public health concern. It remains safe to eat poultry products. As a reminder, consumers should always utilize the proper handling and cooking of eggs and poultry products, including cooking to an internal temperature of 165˚F.

About HPAI
HPAI is a highly contagious viral disease affecting bird populations. HPAI can travel in wild birds without those birds appearing sick, but is often fatal to domestic bird populations, including chickens and turkeys. The virus can spread through the droppings or the nasal discharge of an infected bird, both of which can contaminate dust and soil.

Signs of HPAI may include:
•           Sudden increase in bird deaths without any clinical signs
•           Lethargy and/or lack of energy and appetite
•           Decrease in egg production
•           Soft, thin-shelled and/or misshapen eggs
•           Swelling of the head, eyelids, comb, wattles, and hocks
•           Purple/blue discoloration of the wattles, comb, and legs
•           Difficulty breathing
•           Coughing, sneezing, and/or nasal discharge (runny nose)
•           Stumbling and/or falling down
•           Diarrhea

For additional information on HPAI, please visit the Iowa Department of Agriculture and Land Stewardship’s website.




Flagship Pork Checkoff Programs Receive ISO Compliance  


The National Pork Board is proud to announce that its flagship certification programs have been confirmed to be compliant with ISO Technical Specification (TS) 34700, recognizing pig farmers commitment to the highest level of care and well-being for the pigs they raise.  
    Pork Quality Assurance® Plus (PQA Plus®) version 5.0
    PQA Plus Site Assessment version 5.0
    Transport Quality Assurance® (TQA®) version 8

This accomplishment underscores pork producers’ dedication to providing pigs with an environment that is healthy, safe and sustainable.  

Stephanie Wisdom, director of animal welfare and sustainability at NPB, said producers uphold high standards of animal welfare within their barns through a combination of safe and appropriate housing, responsible management practices and veterinary care.

“Obtaining compliance for our programs clearly shows that animal welfare is a top priority for U.S. pork producers and the U.S. pork industry,” Wisdom said. “It reflects our industry’s deep commitment to top-notch animal care, public health and food safety in the pork industry. This achievement assures both producers and consumers that our practices meet globally recognized standards and showcases our commitment to compassion and respect for the animals we raise.”

Wisdom said implementing these programs and maintaining certifications builds consumer confidence that U.S. Pork is not only good for you and good for the planet, but it also meets the highest animal welfare standards in the world.   



USMEF Conference Concludes with Officer Elections, Logistics Update


The U.S. Meat Export Federation (USMEF) Strategic Planning Conference wrapped up Friday, Nov. 10, in New Orleans with the election of a new officer team. Randy Spronk, a pork and grain producer from Edgerton, Minn., is the new USMEF chair.

A past president of National Pork Producers Council and Minnesota Pork Producers Association, Spronk is president and managing partner for Spronk Brothers Holding, which includes operations that produce pork and feedgrains along with feed milling and delivery. Spronk is also part of a group of producers that purchased a former Hormel plant and is marketing pork products under the label of Wholestone Foods.

“It's phenomenal to see how different organizations work together through USMEF to export U.S. beef, pork and lamb worldwide,” Spronk said. “We bring all the sectors together into one room and discuss trade. What are the obstacles? What are the things we've done right?”

Spronk has participated in numerous trade missions, beginning with a 1999 journey to Japan with then-Minnesota Governor Jesse Ventura. He made his first return to Japan this year as part of a USMEF delegation that also visited South Korea. Spronk has also promoted U.S. red meat products in several Latin American markets while on trade missions and during USMEF product showcases in Colombia, Panama and the Dominican Republic. These experiences have driven home the importance of market diversification, ensuring that the U.S. meat industry is not overly dependent on a few major destinations.

Diversification, which Spronk says is the key to maximizing export value, is one of the “Three Ds” he emphasized in his address to USMEF members: DIVERSIFICATION of export markets and DIFFERENTIATION of high-quality U.S. red meat, to expand global DEMAND.

“Having multiple markets will bring more value back to our producers,” Spronk said. “We also have to differentiate what we do in the United States from others so that we have long-term growth in our markets. I think we have a strong story to tell on sustainability and it can help differentiate us, because of how responsibly we produce our feed and livestock. It’s a story that nobody else in the world can replicate.”

Spronk succeeds outgoing USMEF Chair Dean Meyer, a corn, soybean and livestock producer from Rock Rapids, Iowa. Steve Hanson, a cattle rancher from southwestern Nebraska who is also president of the Nebraska Cattlemen, will serve as USMEF chair-elect in the coming year. The vice chair is Jay Theiler, executive vice president of corporate affairs for Agri Beef, based in Boise, Idaho.

The newest USMEF officer is Secretary/Treasurer David Bruntz, a farmer and cattle feeder from Friend, Neb. Bruntz farms with his brother and nephew, raising corn and soybeans along with fed cattle. His past leadership roles include serving as chair of the Nebraska Corn Board, president of the Nebraska Cattlemen and National Cattlemen’s Beef Association regional vice president. Bruntz has also served on the USMEF Executive Committee, representing the feedgrains sector.

Friday’s closing business session also included an update on transportation and logistics issues that impact U.S. pork, beef and lamb exports. Mark Szakonyi, executive editor for the Journal of Commerce, reviewed the Federal Maritime Commission’s (FMC) progress in implementing the Ocean Shipping Reform Act. The legislation passed in mid-2022 but the FMC is still working through key rulemakings mandated by Congress on detention and demurrage billing practices and the circumstances in which ocean carriers may refuse cargo. Szakonyi also previewed upcoming negotiations on a new labor contract for East and Gulf Coast longshoremen.

Greg Shimonek, director of key accounts for Americold Logistics, informed USMEF members about the growing number of options for moving meat and other refrigerated food products by rail. To date these services have been limited to transport within the U.S. market and to coastal ports for export, but Americold is working with Canadian Pacific Kansas City Railroad and regulatory officials to accommodate direct transport to destinations in Mexico. This type of service is of increasing interest to exporters due to heightening congestion at some U.S.-Mexico border crossings.

Thursday’s activities included meetings of USMEF’s standing committees, where USMEF international staff and other speakers updated attendees on issues of particular interest to the pork, beef, exporter and feedgrain and oilseed sectors. USMEF members also toured the Port of New Orleans and nearby cold storage facilities operated by Lineage Logistics.

Also on Thursday, USMEF presented its Michael J. Mansfield Award to former ambassador to China and longtime Iowa governor Terry Branstad. Bill Westman, who had a long career with the USDA Foreign Agricultural Service and later directed international affairs for the North American Meat Institute, received the USMEF Distinguished Service Award. More details on these awards are available from the USMEF website.

USMEF members will next meet May 22-24 at the federation’s Spring Conference in Kansas City.



FDA Takes Action to Withdraw Carbadox Use in Piglets

 
What happened: The U.S. Food and Drug Administration (FDA) is once again attempting to stop the use of carbadox, a medication utilized in piglet feed to prevent diarrhea, citing concerns over potentially carcinogenic residues in pork.
 
Carbadox has been used for nearly 50 years, and its manufacturer repeatedly has proved the safety of the animal drug. It is not considered medically important to human medicine, so is not a concern for antimicrobial resistance in human pathogens.
 
The FDA recently issued a final order, revoking the approved method for detecting carbadox residues. Separately, because there is no approved method for detecting residues, the FDA will withdraw approval of animal drug applications for carbadox use in feed. In 2020, the FDA dismissed a 2016 proceeding, opting for a fresh review of the regulatory method for carbadox approval, despite Phibro Animal Health, the drug's manufacturer, previously providing extensive research supporting its safety.
 
The National Pork Producers Council will continue to advocate for pork producers’ continued access to carbadox. In comments submitted to the FDA in May 2022, NPPC points out that carbadox usage at the nursery stage involves a 42-day withdrawal period, likely exceeding 60 days, providing an additional safety buffer against residues. The removal of carbadox from the market, as warned by NPPC, could potentially escalate the use of alternative antibiotics, increasing the risk of difficult-to-control antimicrobial resistance in bacterial pathogens.



NCBA Again Strongly Opposes USDA’s Decision to Allow Paraguayan Beef Imports


The National Cattlemen’s Beef Association (NCBA) strongly opposes the U.S. Department of Agriculture’s (USDA) decision to allow Paraguayan beef imports starting next month. NCBA has repeatedly raised concerns with USDA over Paraguay’s history of foot-and-mouth disease (FMD) and the outdated information used to justify Paraguay’s access to the U.S. market. NCBA is concerned that USDA’s failure to use information from recent site visits in the risk assessment may pose great risk to the safety of the U.S. cattle herd.

“USDA based their decision to allow beef imports from Paraguay on a deeply flawed risk assessment that uses old data from site visits that were conducted more than nine years ago. Paraguay has a history of FMD outbreaks, and it is unclear if their inspection system can provide an equivalent level of safety for animal health to prevent a possible FMD outbreak on U.S. soil,” said NCBA Executive Director of Government Affairs Kent Bacus. "Paraguay heavily relies on private sector funding for most of its FMD mitigation measures, and USDA did not consider the risk associated with Paraguay’s economic downturn over the last several years.
 
"Gaining beef access to the U.S. market has been the top priority for Paraguay in multiple rounds of trade discussions. Unfortunately, this is not the first time that a foreign country’s beef access to the United States was a pre-determined outcome and used as a bargaining tool for other U.S. interests. The dismissal of legitimate concerns from U.S. cattle producers is unacceptable and USDA should halt this unscientific, unsafe rulemaking. While winning friends and allies in South America may be part of the long-term interests of U.S. diplomacy, it should not be done on the backs of U.S. cattle producers or by putting at risk the health and livelihood of the safest and most efficient cattle and beef production system in the world.”

Background
NCBA filed comments earlier this year calling on USDA to continue blocking fresh beef imports from Paraguay due to Paraguay’s history of foot-and-mouth disease (FMD) and the outdated information from site visits in 2008 and 2014 that were used to justify Paraguay’s access. NCBA also raised concerns about Paraguay’s ability to fund and administer FMD safeguards and called into question the security of the borders they share with other countries including Brazil. NCBA urged USDA to continue the ban on Paraguayan beef imports until a thorough review can be conducted and U.S. cattle producers are assured Paraguay is able to provide an equivalent level of safety for U.S. consumers and livestock.




Tyson to shutter 2 more processing plants as earnings woes mount


Tyson Foods Inc is closing two more processing plants as it rounds out a tough year mired with pricing challenges and slow consumer demand.

The meat giant will shutter two of its case-ready, value-added production facilities in Columbia, South Carolina, and Jacksonville, Florida, a spokesperson confirmed in an email Thursday. The decision adds to the growing number of Tyson layoffs and plant closures this year.

Approximately 219 employees will be affected from the factory closing in Florida, according to a recent WARN filing. No further details were available for the South Carolina facility. A spokesperson said Tyson was “reallocating resources to operate more efficiently.”

Over the past year, Tyson and other meat companies have struggled with volatile prices and slow consumer demand, resulting in significant losses and cost-cutting measures to shore up their businesses.

The two latest closures add to the six chicken plants Tyson shuttered this year, as well as significant layoffs at a poultry complex in Wilkesboro, North Carolina, last month.

A spokesperson said the company will make efforts to support their workers, offering opportunities at other locations and partnering with state and local officials to provide any additional resources.

“We understand the impact of this decision on our team members,” the spokesperson said. “With a focus on optimizing our operational footprint, we are reallocating resources to operate as efficiently as possible, while maintaining ample capacity to serve our customers.”

A mix of challenges have spelled trouble for the U.S. industry this year, including low chicken prices, high input costs and supply pressures that have raised the cost of beef and pork. This has translated to consecutive quarterly losses for JBS SA, Smithfield parent WH Group and Tyson.

As meat sales slowed, Tyson reported an operating loss of $49 million in the second quarter, followed by a loss of $350 million in the third quarter. About 600 workers were affected by Tyson’s six chicken plant closures, in addition to an estimated 250 workers laid off in Wilkesboro, North Carolina.

The closure in South Carolina marks the second time the plant has been idled, the first being in 2020, according to local news reports. In 2021, Tyson said it planned to invest $55 million into the location to reopen the plant and transform the plant into a case-ready facility, employing 330 people. The South Carolina Department of Employment and Workforce declined to immediately respond to a request about the closure.

The case-ready meat plant in Florida is expected to close Jan. 8, affecting 219 workers with roles ranging from managers and maintenance to butchers and food handlers, according to details in the WARN filing.

The Springdale, Arkansas-based company is scheduled to release its fourth quarter and full-year earnings results on Nov. 13.




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