Perdue to Close Organic Plant in Pennsylvania16 January 2014
US – US poultry processor Perdue is to close its Booth Creek Natural Chicken (BCNC) plant in Fredericksburg, Pennsylvania.
Perdue says the move is part of the company’s plan to modernise plants with the capability and capacity to better serve customers for its Coleman and customer-owned organic and no-antibiotics-ever brands.
“As we increased our focus on premium brands and products, we freed up capacity across our supply chain, which lead us to look at how we could align our assets to more efficiently serve all of our customers,” said Lester Gray, Senior Vice President of Operations for Perdue Foods.
“When we looked at our long-term needs, it became clear that the BCNC plant would require significant and costly upgrades, and even then, we would not overcome the age and physical limitations of the facility,” said Mr Gray.
The Fredericksburg plant will close on or shortly after 14 March.
The lease for a distribution centre in Denver, Pennsylvania that serves the BCNC plant will not be renewed.
Perdue said it will offer all affected workers the opportunity to transfer to other Perdue plants.
“We value the skills and dedication of the BCNC associates, and hope as many as possible will stay with us,” said Mr Gray.
“We are also working with the appropriate unions on potential transition benefits.”
Employees, who choose not to transfer, will be offered severance packages, including extended benefits coverage.
Perdue Farms said it will also work with other employers and agencies to place as many individuals as possible within the community.
Perdue added that the changes will have no impact on the company’s organic live production in Pennsylvania and the company will continue organic chicken production with the same local farmers, USDA certified organic feed ingredient suppliers and organic feed manufacturing, and local hatchery.
The company is planning to work with its other Pennsylvania growers to transition them to organic production. Perdue Farms is also contracting with Pennsylvania farmers as it develops a breeder operation in the state.
“These moves are part of an on-going strategy to focus on premium brands and products in the USDA Process Verified All-Vegetarian Fed, No-Antibiotics-Ever, and Organic segments, while increasing efficiencies in an ever-more competitive marketplace,” said Chairman Jim Perdue.
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