CALIFORNIA, MO. - Cargill announced Thursday it is shutting down its third shift Oct. 12 at its California plant. The cut is expected to affect 61 employees
Mike Martin, director of communications for Cargill, Wichita, Kan., cited three factors for the decision:
• Escalating input costs such as grain, which has resulted in softening demand for turkey meat products;
•The need to manage turkey meat inventory, which has been building due to that weakening demand;
• Increasing transportation costs for raw materials being shipped to Cargill's Springdale, Ark., facility for processing.
"The best current estimate is that approximately 35 hourly, 20 temporary and six salaried employees will be impacted," Martin said. "Impacted employees will receive severance payments, outplacement services and other appropriate support."
Cargill is also in the process of communicating with impacted third parties, including contract growers, USDA, utility companies and others.
Prior to this reduction, the California Cargill facility employed approximately 500 people. The plant is one of four turkey processing facilities operated by the company in the United States. The others are located in Virginia, Texas and Arkansas.