National Beef to close processing plant in California

National Beef Packing Company plans to close its processing facility in Brawley, California, a move which will affect around 1,300 employees.

The decision comes as the company has been facing declining supply of fed cattle for the site.

National Beef CEO Tim Klein said that it was a very difficult decision for the company to make because of the impact on its employees and suppliers.

"We are optimistic about the long-term prospects for US beef demand and we will continue to focus on expanding our position as the industry leader in value-added beef products," Klein added.

National Beef vice president and general manager Brian Webb said, "We have a committed, hard-working team of employees and suppliers in Brawley, and we truly understand the impact this will have on them."

The company has not yet determined the future status of the facility.

According to industry experts, the Brawley site has the capacity to slaughter around 1,900 cattle heads per day, primarily Holstein steers, reported Reuters.

California has been suffering historic drought that has damaged grazing pasture and dried up much-needed water, forcing ranchers to sell off herds or send them to feedyards as far afield as Kansas and Nebraska.

Headquartered in Kansas City, Missouri, National Beef and its subsidiaries operate in Liberal, Dodge City and Kansas City, Kansas; Brawley, California; Hummels Wharf, Pennsylvania; Moultrie, Georgia; and St. Joseph, Missouri.

The company processes beef, case-ready beef, beef by-products and wet-blue leather for domestic and international markets, and has a workforce of 8,900.

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Image: National Beef processes beef, case-ready beef and beef by-products. Photo courtesy of Grant Cochrane at FreeDigitalPhotos.net.