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MILFORD, Beaver County — National food company Smithfield Foods announced Tuesday it is ending contracts with 26 hog farms in Utah and laying off up to 70 workers in the state.
A statement from Smithfield Foods said it's ending the 26 contracts in Utah to "optimize its supply chain for more efficient operations in the face of an industry oversupply of pork, weaker consumer demand and high feed prices."
The contract terminations will also result in the elimination of Smithfield Foods positions that support contract farm relationships, the company said. Smithfield Foods said it is offering relocation opportunities for affected employees and will provide transition assistance.
The number of jobs being eliminated may be up to one-third of the 210 people currently employed in Utah hog production operations, the company said.
"Our industry and company are experiencing historically challenging hog production market conditions," said Smithfield Foods CEO Shane Smith. "Smithfield continues to take steps to improve operational efficiency and optimize our hog supply chain. These actions have included rebalancing production with East Coast harvest capacity, reducing our sow herd in Missouri and closing finishing operations in Utah."
"These are difficult decisions, but they are necessary to help our company remain competitive in this operating environment," Smith added.
The company's website says it has 75 company-owned farms, 28 contract farms and a feed mill in Utah.
Utah Farm Bureau Federation CEO Spencer Gibbons said he is disappointed farm families had their contracts canceled and that local Smithfield employees are out of work.
"This decision will have a negative impact on the families and communities in rural Utah that have relied on this business model for decades," he said. "While we understand there are many economic forces at play for Smithfield, it is unfortunate that so many will bear the brunt of these business decisions."
Gibbons said the Utah Farm Bureau will work with other agricultural leaders in the state to see how they can help the families impacted.
In June 2022, Smithfield Foods announced it would close down a majority of its operations in Beaver County. As the largest employer in the county, Smithfield's decision prompted outcry from the community.
The Beaver County Commission declared a state of economic emergency after the announcement last June.
"It impacts a lot of family, friends and all," County Commissioner Mark Whitney told KSL.com last year. "We can truly feel in our hearts and souls how many people this can devastate."
The Smithfield, Virginia-based company employs around 60,000 people across seven countries and partners with thousands of farms across America.
