Source: Tom Johnston, MEATINGPLACE, 9/15/11


Butterball LLC said Wednesday it will close its Longmont, Colo., plant on Dec. 31, 2011, to streamline operations in the face of increased grain and other input costs.

“The decision to close a facility is one of the most difficult decisions a company can make. After long and careful consideration, amid record high ingredient costs, our company has come to the conclusion that we must take these steps in order to improve our overall effectiveness,” said Rod Brenneman, president and chief executive officer of Butterball. “With this country’s current economic situation, it is all the more difficult. However, government ethanol subsidies and record high fuel prices for much of 2010 and 2011 contributed to a major increase in our operating costs, and the closure of this facility is necessary to streamline our operations and accommodate current and projected demands.”

Butterball said it has spent an average of $65 million in each of the past five years, or a total of $325 million in that period, in increased costs related to higher feed and other commodity prices.

The company said it is providing Longmont employees career counseling and offering job opportunities at other company locations, as well as additional support through employee assistance programs.

Garner, N.C.-based Butterball is America's largest producer of turkey products and has six plants throughout the United States.

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