Tyson faces lawsuit by poultry farmers after Missouri plant closure

USAgNet - 01/12/2024

A group of poultry farmers has initiated a lawsuit against Tyson Foods and two supervisors in response to the shutdown of a poultry processing plant in southeast Missouri.

These farmers, who supplied hens and fertile eggs to Tyson, claim they invested millions into maintaining and upgrading their brooder houses based on assurances from Tyson that the Dexter hatchery, feed mill, and processing plant would remain operational for the foreseeable future. However, these facilities closed in October as part of Tyson's cost-saving strategy.

The farmers are now seeking compensatory damages and a jury trial, alleging that Tyson misrepresented itself in the years leading up to the plant's closure. They also suggest a conspiracy that led to one long-time broiler grower selling their farm before Tyson officially informed workers of the changes. Tyson declined to comment on the matter.

Tyson has faced criticism from rural communities due to the closure of several processing plants in 2023. Missouri's attorney general urged the company to sell rather than close the Dexter facility and another plant, emphasizing that such closures would have wide-ranging negative impacts.

The plaintiffs, including egg farmers from Missouri and Arkansas, claim that Tyson knew about the impending closure but did not inform them until August 7, leaving them in a difficult position. They cite an investor filing from November 15, 2021, where Tyson outlined $1 billion in recurring savings and planned changes between 2023 and 2024.

The farmers also allege that a supervisor informed a grower about the impending changes after Tyson internally decided to close the plant, allowing the grower to sell the farm in advance.

During the period between the investor filing and the plant's closure, the plaintiffs invested heavily in farm improvements, including costly installations and construction projects, all at Tyson's request.

The Biden administration has been working to increase transparency in contracts for poultry growers, which has implications for the industry. Tyson relies on a network of contract growers within 45 miles of production facilities, and for those in Southeast Missouri, the Dexter location was their primary processing plant.

Cal-Maine, an egg producer, recently announced plans to purchase Tyson's former assets and transform the Dexter site into an egg-grading facility.

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