Smithfield Foods closes pork factory, warns of American meat shortage

<p>Smithfield Foods announced on Sunday that its facility in Sioux Falls, South Dakota will be closed indefinitely. This comes after the pork production plant was closed for three days due to a large number of their 3700 employees testing positive for the new coronavirus.

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According to the publication, the Sioux Falls plant accounts for about 4% -5% of the country’s pork production and is one of the largest pork processing plants in the United States. It says Kenneth M. Sullivan – president and CEO of Smithfield Foods – is concerned that this move will have a major impact on Americans.

“The closure of this plant, combined with a growing list of other protein plants that have closed down our entire industry, is driving our country dangerously close to the edge in terms of our meat supply,” he said. β€œIt is impossible to keep stock in our grocery stores if our plants do not work. These plant closures will also have serious, perhaps catastrophic, consequences for many in the supply chain, first and foremost our nation’s livestock breeders. These farmers have nowhere to send their animals. ”

In addition, the company states that the plant delivers almost 130 million portions of food per week – or about 18 million portions per day. In turn, Smithfield Foods announced on Monday that it is making a donation of more than 10 million pounds of protein to food banks across the United States. This is the largest donation in the company’s history, according to the announcement, and will support food banks struggling to meet the growing demand due to coronavirus.

Keira Lombardo, vice president of corporate affairs and compliance at Smithfield Foods, had this to say about the donation:

“The challenges facing our country are unparalleled, and food banks across America are feeling the strain as food security reaches new heights. Helping to ensure the well-being of our neighbors in need is of the utmost importance now more than ever. To help meet this huge need, Smithfield is making our largest donation ever in famine relief and distributing hundreds of trucks of protein to communities across the country in response to COVID-19. ”

Nick Clarkson is the web editor at InvestorPlace. At the time of writing, he had no position in any of the above-mentioned securities.