Butterball will close its plant at the end of the year, leading to the loss of 350 jobs.
Rising grain and fuel costs are the primary reason for the decision to close the Longmont plant, Nalley said.
“Corn is a primary ingredient of our feed costs, so is soybeans,” he said. “Grain represents approximately 70 percent of the costs for us to produce a live turkey, ready to be processed. Grain has essentially doubled just since 2010.”
In fact, costs for things such as corn, soybean meal and fat have gone up an average of nearly $65 million per year for the past five years, or $325 million total, the company said.
“We've been looking at this, actually, for the past couple years, because costs have continued to go up,” Nalley said.
The Longmont turkey plant dates back to 1951, when it opened as Longmont Foods. Rising fuel costs were another reason cited by Nalley in the decision to close Longmont.
This year alone the company's fuel costs — primarily diesel — will have increased $15 million to $20 million over 2010, he said.Read the previous post to learn why this is happening. Again, complicated problems, simple solutions.....
It is difficult to believe this company survived Jimmy Carter, but not Obama.