Perdue Farms is set to close a chicken production plant in Monterey, Tennessee and will lay off more than 400 workers, the company confirmed to Agriculture Dive on Tuesday.
The processor will shut down the facility on March 28, citing changes in market demand and how it processes and supplies chicken products for today’s customers. Addressing the Monterey plant’s challenges would require “substantial additional investments to maintain operations,” a Perdue spokesperson said in an email to Agriculture Dive.
About 433 jobs will be eliminated as part of the closure. The company said it will provide severance packages and job placement support to affected workers.
“This decision was not made lightly, and we are committed to treating every impacted associate with dignity, respect, and care,” Perdue CEO Kevin McAdams said in a statement. “We extend our deepest gratitude to the Monterey team for their hard work and dedication and remain proud of the contributions they’ve made to our business.”
The poultry processor is one of the latest meatpackers to roll back production capabilities. In 2023, Tyson Foods closed six chicken processing plants to address supply and demand imbalances and shore up costs. Last year, Pure Prairie Farms abruptly closed its Iowa plant after filing for bankruptcy.
Perdue, founded in 1920, generated $9.8 billion in sales last year with a focus on chicken, turkey, pork, beef and lamb raised without antibiotics.
In a Facebook post Friday, Putnam County Mayor Randy Porter said the chicken plant has been a fixture in the Monterey community for decades.
“Our hearts and prayers go out to the 433 employees who will be impacted by the closing,” Porter wrote. “We will be working closely with Monterey officials and our Chamber of Commerce to do everything we can to assist the workers during this difficult time.”