FRESNO – The 700 jobs that were at risk of going under the knife as part of the sale of a meat processing plant in Fresno will be spared – for now.
California Attorney General Rob Bonta’s office announced on Aug. 22 that the workers at the Cargill culled cattle slaughter and processing plant will retain their jobs for at least 12 months after the sale of the plant to Western Valley Meat Company (WVM), which is an affiliate of Central Valley Meat Company located in Hanford.
“For dairy farmers, the loss of the Fresno Cargill plant could have meant lower cattle prices and fewer options when selling their cattle,” Bonta said in a press release.
Bonta added, “The Central Valley has fed California and the U.S. for decades, and today I am proud to have secured the continued operation of an important processing plant and protection of 700 jobs for at least 12 months.”
Congressman Jim Costa also made a statement about the circumstance, saying, “Food is a national security issue. This acquisition will not only support local dairy farmers but also meet market demand and keep our supply chain intact.”
WVM and Cargill are two of the largest companies in the Valley that slaughter cull cows. These are animals that no longer produce milk. Earlier this year, WVM agreed to purchase the Cargill plant.
In addition to the loss of jobs, Bonta’s office was concerned that with the exit of Cargill, WVM would be the sole big player in the industry. This could lead to a decrease in market competition and have an adverse effect on the dairy industry. There was also concern WVM would shutter the plant after purchasing it.
According to the court documents Bonta’s office filed on Aug. 21 in Los Angeles Superior Court, WVM and Cargill operate the two largest culled-cattle slaughter plants in the state. In 2022 and 2023, the Cargill plant processed more than 300,000 head of cattle. WVM’s Hanford plant processed roughly the same number of cattle over the same period.
WVM agreed to purchase the Cargill facility on April 26, 2024. The acquisition would make Western Valley the owner/operator of the largest slaughter plant in the Valley. According to court documents, “It (WVM) might have sufficient market power to charge anti competitive rates for the purchase of culled cattle from dairy farmers. Further, were WVM to close the plant, capacity would be reduced, increasing the chance of the anticompetitive effects.” Court documents also mentioned that at the time of the proposed sale, WVM had not made any agreement to keep the plant open.
Not all Cargill plant jobs were saved. When the proposed sale was announced, the plant employed 880 workers. During the first week of June of this year, layoff notices were issued to 178 employees.
Cargill is the latest well-known operation acquired by Central Valley Meat Company. In 2019, the company purchased Harris Beef Company in Coalinga.
