Global meat producer JBS has announced the planned closure of two of its facilities located in the US states of Pennsylvania and Tennessee.
The announcement was made on Friday, June 12, and includes the closure of its beef production facility in Souderton, Pennsylvania near Philadelphia and its value-added facility in Memphis, Tennessee.
The beef production facility in Souderton, Pennsylvania has a capacity to slaughter 1,950 head of cattle/day and employs approximately 1,700 staff.
The value-added facility in Memphis, Tennessee produced multi-protein packaged products for retail but no animals are slaughtered at this site.
The announcement of the closure of the two facilities comes as data from the United States Department of Agriculture (USDA) shows 2026 US cattle inventories are running at a historic low while US cattle prices remain at historic highs.
In announcing the planned closure of the two facilities, the company emphasised its commitment "to supporting those affected" and described the move as "targeted changes to strengthen operations for the future".
A statement from the firm issued to Agriland explained that JBS USA is currently implementing transition plans that include:
- Opportunities for team members to apply for open roles at other company facilities across the US;
- On-site support and resources to assist team members through the transition;
- Continued engagement with local stakeholders and workforce partners.
CEO of JBS USA Wesley Batista Filho said: "These decisions are never easy because they directly affect our team members and the communities where we operate.
"Our focus right now is on supporting them with transparency, respect, and access to new opportunities wherever possible," he added.
A statement from JBS USA emphasised that "these actions are part of a broader strategy focused on growth, modernisation, and long-term competitiveness in the US".
It also added that over the past year, JBS USA has made "significant investments in new facilities and improvements across the US, including major expansions in Texas, Georgia, and Iowa".
"These projects are focused on growing our prepared foods and value-added capabilities, modernising operations, and enhancing the company’s ability to serve customers in the years ahead."
Batista Filho added: “JBS USA is investing heavily in the United States and in the future of food production
“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.”
Earlier this year, JBS USA combined its beef and case-ready businesses into what it described as "a more integrated platform designed to improve efficiency, enhance productivity, and expand value-added capabilities across its network".
The meat processor explained that production from the affected facilities "will be absorbed into other operations across its network, ensuring continuity of supply and service for customers".
According to Batista Filho, 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.
“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.”