Butterball is closing its Jonesboro, Arkansas, processing plant next year as lower turkey prices drag down poultry producer earnings.
The company said it submitted a WARN filing Dec. 4 and notified approximately 180 workers of layoffs. Butterball plans to move production from Northeast Arkansas to other facilities within its manufacturing network, according to its statement.
“We deliberated for a long time about this difficult decision,” Butterball CEO Jay Jandrain said in remarks to reporters. “We are committed to helping our team members as they determine next steps in their careers.”
Butterball reported $6 million in net income for the quarter ending in September, a 70% decline from a year ago. Seaboard, which owns a 52.5% majority stake in Butterball, attributed the results to weaker sales driven by low market pricing.
Low turkey prices and soft demand have also impacted competitor Hormel, owner of the Jennie-O Turkey brand. Hormel said in its latest earnings report that it expects pricing pressures to continue through 2025, and that volatility around bird flu has additionally made it difficult for the company to execute on plans to rightsize supply.
Butterball has operated its Jonesboro further processing plant for nearly 19 years, Arkansas news outlet Talk Business & Politics reported. The company also has operations in Huntsville and Ozark, as well as feed mills in Alix, Altus and Yellville.
The Jonesboro plant is scheduled to remain open through Feb. 3, 2025, with workers eligible for medical benefits through the end of the month as well as a severance package, Butterball said in a statement.
Tyson Foods, Cargill and Deere & Co. also announced plant closures and layoffs as a broader decline in agricultural markets impacted earnings for companies across the industry.