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Butterball To Reduce Operations at Longmont

by 5m Editor
26 June 2008, at 4:04p.m.

US - Butterball will reduce turkey placement and slaughter operations at its Longmont facility.

Butterball LLC announced yesterday that it will reduce turkey placement and slaughter operations at its facility at Longmont, Colorado.

The decision is in response to the crisis that the US animal agriculture industry is facing due to soaring feed ingredient costs. The increased costs have resulted from government policies that mandate ethanol production as a part of the Renewable Fuel Standards. In the past year alone, Butterball’s feed costs have increased by $200 million and over $300 million in the last two years.

"Reducing placement and slaughter operations at the Longmont facility is, sadly, the most economically viable measure our company can take. We have made every effort to improve our operational practices, even with that, this is necessary in order to continue the operation of one of the country’s most cherished brands," said Keith Shoemaker, CEO of Butterball.

"Congress and the administration have been cautioned since at least 2005 that consequences such a plant reductions, closings, higher unemployment and higher food costs would result from our nation’s current renewable fuels policy.

"Those predictions, sadly are coming true, and the situation is not going to get better without a change in our current policy."

Butterball’s actions are part of an operational strategy to curtail losses amid record-high costs for corn, soybean meal and other feed ingredients.

These changes will result in the loss of approximately 210 jobs in the Longmont processing facility and Butterball grow-out operations. The impact on the surrounding community and associated industries is undetermined at this time.

The decision allows Butterball to maintain its commitment to offer the best value to consumers, the company says.

5m Editor