JBS USA announced June 12 the planned closure of two facilities in Pennsylvania and Tennessee. In a news release, the company emphasizes its commitment to supporting those affected as it makes targeted changes to strengthen operations for the future.
The closures include:
- Beef production facility in Souderton, Pa. — a suburb of Philadelphia. The single-shift plant employs about 1,700 people and can slaughter approximately 2,000 head per day.
- Value-added facility in Memphis, Tenn.
“These decisions are never easy because they directly affect our team members and the communities where we operate,” says Wesley Batista Filho, CEO of JBS USA. “We are deeply grateful to the team members at these facilities for their efforts and contributions over many years. Our focus right now is on supporting them with transparency, respect, and access to new opportunities wherever possible.”
JBS USA is implementing transition plans that include:
- Opportunities for team members to apply for open roles at other company facilities across the U.S.
- On-site support and resources to assist team members through the transition.
- Continued engagement with local stakeholders and workforce partners.
The company says these actions are part of a broader strategy focused on growth, modernization and long-term competitiveness in the U.S.
“Over the past year, JBS USA has made significant investments in new facilities and improvements across the United States, including major expansions in Texas, Georgia and Iowa,” the company says in the news release. “These projects are focused on growing our prepared foods and value-added capabilities, modernizing operations and enhancing the company’s ability to serve customers in the years ahead.”
Earlier this year, JBS USA combined its beef and case-ready businesses into a more integrated platform designed to improve efficiency, enhance productivity and expand value-added capabilities across its network.
“JBS USA is investing heavily in the United States and in the future of food production,” Filho says. “At the same time, we must ensure our operations are efficient, modern and positioned to compete. By investing where we are growing and making difficult adjustments where needed, we are building a stronger and more resilient company.”
Derrell Peel, Oklahoma State University Extension livestock marketing specialist, says, the JBS announcement is the next industry casualty.
“Not really a surprise given the continuing industry losses,” he summarizes. “I don’t expect much general market impact.”
He says the closure does not change the overall industry balance or eliminte the excess capacity given cattle numbers.
“However, the regional impacts could be more serious,” he stresses. “The northeast is a unique, somewhat isolated regional market. It’s not clear what the future plans are — is the plant permanently gone or just mothballed for the present. Continued losses in total capacity mean that the likelihood of hitting a capacity constraint at some point in the future — possibly next decade — is increasing.”
Maintaining Service and Supply Continuity
The company reports production from the affected facilities will be absorbed into other operations across its network, ensuring continuity of supply and service for customers.
“JBS USA remains committed to U.S. agriculture and rural communities, working closely with producers and grower partners across the country,” the release says.
Filho says the company remains confident in its long-term outlook.
“Demand for high-quality protein continues to grow, and we are committed to meeting that demand as a reliable partner to our customers, producers and communities,” he says. “These steps ensure we are better positioned to invest in the future, strengthen our operations and continue delivering the products people depend on every day.”
