June 10, 2022

Smithfield Foods Inc. plans to stop all harvest and processing operations in its Vernon, California, facility in early 2023, the company announced today.

At the same time, Smithfield plans to “align its hog production system by reducing its sow herd in its Western region,” the company said in a statement, meaning it will decrease its sow herd in Utah and is exploring strategic options to exit its farms in Arizona and California.

Smithfield harvests only company-owned hogs in Vernon. It will serve customers in California with its Farmer John brand and other brands and products from existing facilities in the Midwest, it said. The Sioux Falls plant is one of the largest pork-processing facilities in the country, representing 4 percent to 5 percent of U.S. pork production.

“Smithfield is taking these steps due to the escalating cost of doing business in California,” the company said.

Smithfield is providing transition assistance to all impacted employees, including relocation options to other company facilities and farms as well as retention incentives to ensure business continuity until early next year.

Smithfield counts more than 40,000 American employees at 46 facilities and nearly 500 company-owned farms. There are nearly 3,000 employees in Sioux Falls.