Cargill to Close Arkansas Turkey Plant
Arkansas Turkey Plant Closure to Hit 1,000 Employees, 100 Area Farmers
LINCOLN, Neb. (DTN) -- Cargill Inc. is closing its turkey processing plant in Springdale, Arkansas, effective in August 2025, leaving about 1,000 employees out of work and about 100 farmers who supply the plant without a market.
Cargill told DTN on Wednesday that the plant, which has been in operation since 1965, is set to close on Aug. 1.
"This was not an easy decision to make, given the impact to the approximately 1,100 people who work there and local producers," the company told DTN in a statement.
"However, it is the right move to make for the future of our turkey business. Turkey remains an essential part of Cargill's protein portfolio. We will shift much of Springdale's production to our turkey processing plants in Missouri and Virginia and work to minimize supply disruptions to customers."
Cargill said it would honor contractual obligations to growers and continue to process turkey and other proteins at more than 40 other facilities in the United States and Canada.
The plant processes Honey Suckle White brand ground turkey as well as whole birds for Thanksgiving.
Bill Rogers, president and CEO of the Springdale Chamber of Commerce, told DTN there is a possibility the facility could be used by another company at some point.
"That would certainly be up to Cargill," he said.
"I have been told not to expect a sale to a turkey competitor. Of course, Springdale is the world headquarters for Tyson Foods and for George's, Inc. Simmons Foods is headquartered 30 minutes away."
According to Cargill's website, the 360,000-square-foot plant is one of the largest employers in the city of about 75,000 people.
Springdale was recognized in 2013 by then-Gov. Mike Beebe as the "poultry capital of the world" in a law he signed.
Springdale has a total workforce of about 43,000, according to the chamber in a statement, which added that the loss of the jobs from the plant is a "substantial challenge that requires an equally substantial response."
The average wholesale price for frozen whole turkey hens, according to the USDA, has been falling since 2022. In 2022, they averaged $1.55 per pound, falling to $1.40 in 2023 and just 94 cents per pound in 2024.
In addition, overall turkey consumption in the U.S. fell from 14.8 pounds per capita to 13.9 pounds, according to USDA.
"The contributions of the Cargill team to our local chamber, economy and community life cannot be overstated," the chamber's statement noted.
"To those employees and their families, we want to express our gratitude for the work you have done to sustain Springdale's reputation as a center of excellence in agriculture and food production."
Just last week, Cargill Inc. reached a $32.5 million settlement in a broad class-action lawsuit that alleged price fixing in turkey production, https://www.dtnpf.com/….
The chamber announced it was taking a number of steps to help employees affected by the upcoming closure.
That includes helping workers identify other job opportunities, setting up interviews with the state's workforce program, as well as offering counseling services.
"Springdale has a long history of resilience," the chamber said in a statement.
"The chamber is confident that, together, we can turn this difficult moment into an opportunity to grow and diversify our local economy while supporting those who have been directly affected. We extend our heartfelt support to the employees of Cargill, their families, and everyone impacted by this closure."
Todd Neeley can be reached at todd.neeley@dtn.com
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