Pork Plant Lays off 600

by 5m Editor
5 February 2009, at 12:29pm

US - A US pork processing plant has laid off 600 of its staff because of crippling cash flow problems.

According to a report in the News-Gazette, Meadowbrook Farms, a farmers cooperative in Illinois is facing losses of between $4 million and $5 million following a default on a contract.

The cooperative, owned by 100 farmers, is pulling out all the stops and has called in help from the USDA, private lenders and the village of Rantoul to restart the plant.

The company is hoping the USDA can provide a loan guarantee to get things up and running again.

The problems revolve around debts from Triad Food Group in Chicago and Meadowbrook Farms has filed a complaint against the company in the local circuit court.

Meadowbrook provided anti-biotic-free pork to Triad.