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Smithfield Foods, Citing High Costs of Operating in California, to Close Pork Plant
Wall Street Journal ^ | June 11, 2022 | Patrick Thomas

Posted on 06/11/2022 1:01:06 PM PDT by karpov

Smithfield Foods Inc., the largest pork processor in the U.S. by volume, is closing an 1,800-person plant in California and shrinking the size of its hog herd in the region, saying the cost of doing business in the state wasn’t worth it.

Smithfield, owned by Hong Kong-based pork conglomerate WH Group Ltd., said Friday that it would close the plant in Vernon, Calif., just outside of Los Angeles, in early 2023, citing higher taxes, utility costs and labor costs in the state compared with other areas where it operates.

The decision to close the plant comes as food suppliers are dealing with increased costs on items like livestock feed, transportation and packaging. Russia’s invasion of Ukraine, one of the world’s top grain-producing regions, has sent the price of livestock feed higher in recent months.

In California, the cost of utilities is 3.5 times higher per head to produce pork compared with the 45 other U.S. plants Smithfield operates, a company spokesman said. California officials didn’t immediately respond to requests for comment.

“It’s increasingly challenging to operate efficiently there,” said company spokesman Jim Monroe. “We’re striving to keep costs down and keep food affordable.”

Smithfield also said part of the reason it closed the facility was the regulatory environment in the state. Specifically, a state law passed by voters in 2018 and backed by the Humane Society, called Proposition 12. It requires breeding pigs, or sows, to be able to lie down and turn around in spaces in which they are housed, essentially outlawing pork produced using small gestation stalls in most circumstances.

Pork producers and suppliers have resisted, saying such moves would raise meat prices by causing farmers to spend millions of dollars changing their operations, create supply-chain chaos and risk their pigs’ health.

(Excerpt) Read more at wsj.com ...


TOPICS: Business/Economy; US: California
KEYWORDS: food; smithfield
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Democrats are literally making it difficult to put food on the table. Try telling my wife that current inflation is only 8.6%.
1 posted on 06/11/2022 1:01:06 PM PDT by karpov
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To: karpov

Arent they owned by China now?

Starve the Americans...


2 posted on 06/11/2022 1:02:19 PM PDT by Secret Agent Man (Gone Galt; not averse to Going Bronson.)
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To: karpov

We should NOT allow foreign entities to own strategic assets in the U.S.


3 posted on 06/11/2022 1:03:58 PM PDT by dljordan
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To: karpov

It is the will of Allah. (Blessings be upon him.)


4 posted on 06/11/2022 1:05:34 PM PDT by Spok (Don’t pee down my leg and tell me it’s raining.)
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To: karpov

Muslims rejoice!

California piggies, too.


5 posted on 06/11/2022 1:08:26 PM PDT by miserare ( Impeach Joe Biden!)
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To: karpov

California politicians like eating pork just don’t like dealing with the mess. Same-same with any heavy industry in many parts of the Country... California might have led the way, or developed regulation-warfare, driving heavy industries away.


6 posted on 06/11/2022 1:10:20 PM PDT by Clutch Martin ("The trouble ain't that there is too many fools, but that the lightning ain't distributed right." )
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To: karpov

To quote the current resident of the White House, “Well. Son of a Jill”.


7 posted on 06/11/2022 1:10:37 PM PDT by Tupelo (Don't underestimate The Republican Party's ability to f*ck things up)
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To: karpov

California is stealing from corporations. It’s insane.


8 posted on 06/11/2022 1:11:29 PM PDT by ifinnegan (Democrats kill babies and harvest their organs to sell)
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To: karpov

“It requires breeding pigs, or sows, to be able to lie down and turn around in spaces in which they are housed, essentially outlawing pork produced using small gestation stalls in most circumstances.”

Not who, but what kind of person opposes this regulation?


9 posted on 06/11/2022 1:11:50 PM PDT by Mariner (War Criminal #18)
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To: karpov

Smithfield is pretty poor quality in my book, but they do have a good share of the market.


10 posted on 06/11/2022 1:12:51 PM PDT by jacknhoo ( Luke 12:51; Think ye, that I am come to give peace on earth? I tell you, no; but separation.)
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To: jacknhoo
I prefer...


11 posted on 06/11/2022 1:14:17 PM PDT by dfwgator (Endut! Hoch Hech!)
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To: karpov

A sigh of relief from Rob Reiner, Whoopi, and other fat Ca. communists.


12 posted on 06/11/2022 1:16:12 PM PDT by RetiredTexasVet (Biden not only suffers fools and criminals, he appoints them to positions of responsibility. )
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To: dljordan

We should not be driving American owners out of businesses, too. It’s not good, but the foreign owners at least keep the business going - and they can be nationalized in the event of a war.


13 posted on 06/11/2022 1:17:49 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Secret Agent Man

“Arent they owned by China now?

From Wikipedia: and a wholly owned subsidiary of WH Group of China.


14 posted on 06/11/2022 1:20:23 PM PDT by cymbeline
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To: dfwgator

Never heard of Krusty’s, haha

For most of the year:
Frick’s
https://fricksqualitymeats.com/

And

For special occasions the absolute best:
Snake River Farms Kurobuta pork
https://www.snakeriverfarms.com/kurobuta-pork.html


15 posted on 06/11/2022 1:23:47 PM PDT by jacknhoo ( Luke 12:51; Think ye, that I am come to give peace on earth? I tell you, no; but separation.)
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To: karpov

Glad I stopped eating pork before going broke 🤪


16 posted on 06/11/2022 1:29:47 PM PDT by NWFree (Somebody has to say it)
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To: jacknhoo

Bought a small Smithfield ham once. Had so much infused salt I was thirsty for three days afterwards.


17 posted on 06/11/2022 1:33:24 PM PDT by LFOD (Formerly - Iraq, Afghanistan - here to stay...,)
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To: karpov

They want to outlaw cattle too due to cow farts.


18 posted on 06/11/2022 1:35:56 PM PDT by Cobra64 (Common sense isn’t common anymore.)
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To: karpov
Here's another Vernon, CA meatpacking plant with same opinion of cost of doing business in California.
Farmer John meatpacking plant in Vernon to close in 2023 due to escalating costs (6.10.22)

Corrections, insights welcome.

Also, Trump's red tsunami of patriot supporters are reminded that they must vote twice this election year. Your first vote is to primary career RINO incumbents. Your second vote is to replace outgoing Democrats and RINOs with Trump-endorsed patriot candidates.

Again, insights welcome.

19 posted on 06/11/2022 1:36:03 PM PDT by Amendment10 ( )
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To: karpov

It’s upwards of 14% if you Calc it like they did in the 80’s.


20 posted on 06/11/2022 1:37:08 PM PDT by D Rider ( )
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