Tyson closing plant in Perry
- Thread starter ClonerJams
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It's possible someone may buy it and repurpose it for something different, such as some sort of case ready or processed meats operation. I just don't envision another Kill/Cut plant there, especially from any of the other big guys (Smithfield, JBS, Seaboard). Unless it is someone looking to get into the business and sees it as a way to get in and already have some infrastructure that could maybe retrofit it to their needs - that is entirely possible. The news is still fresh on this one - may hear of something shaking out over the next month or so.
Something to think about...
Tyson closed Cherokee because of cost. It had the highest wages because of being union help.
I could be wrong but Perry had a union also. They ran the highest costs in wages from what I remember. That plant had been rumored to close almost ever since it was bought by Tyson in 01. It stayed open because of a very favorable contract to produce pork and export it to Japan. They wanted a pig around 250-275 lbs and had bigger discounts for bigger pigs at one time. Haven't sold there for several years so not sure that has changed or not.
On a personal note though.... Worked for Tyson, know a ton of the buyers and people that worked for Tyson, I feel terrible for people losing there jobs. Sadly, they are not great to work for since all the old IBP people retired.
Tyson closed Cherokee because of cost. It had the highest wages because of being union help.
I could be wrong but Perry had a union also. They ran the highest costs in wages from what I remember. That plant had been rumored to close almost ever since it was bought by Tyson in 01. It stayed open because of a very favorable contract to produce pork and export it to Japan. They wanted a pig around 250-275 lbs and had bigger discounts for bigger pigs at one time. Haven't sold there for several years so not sure that has changed or not.
On a personal note though.... Worked for Tyson, know a ton of the buyers and people that worked for Tyson, I feel terrible for people losing there jobs. Sadly, they are not great to work for since all the old IBP people retired.
Looking back, doesn't it seem a big failure for these communities that brought in this facilities? It would be interesting to compare cities that brought in these types of facilities with those that didn't and measure the impact 10-50 years later.
This is interesting. I have/had this conversation about my hometown. Industry has left. Some survives, but the eggs sure seem to be in one basket.
The place has natural beauty and a downtown people would pay a lot to enjoy, but the economic engine has been shrinking for decades.
How does a town switch from reliance on one type of industry?
Hoping Perry will be more okay than others due to their proximity to the metro especially with Grimes and Ankeny growth. In larger metros Perry would just be another suburb in terms of distance/time to the center. Obviously that has trickle down effects on population and the businesses that are there to support a certain population so not optimal.
I know several people that already commute from Perry into the metro. That might help stabilize the housing market.
That was one thought I had. How many of these 1,200ish employees actually live in Perry? At least a quarter I am sure but I know there are groups that commute from CR to Tama so I would figure the same would be happening there.
I think I remember the Perry plant being around in the 70s. It was Oscar Meyer then and a union shop. In those days that was a pretty good job for pay and benefits (although physically demanding). Late 80s or early 90s it was sold to IBP. No longer a union shop, IBP did a lot of what they called “border recruitment”, and Perry changed a lot. I thought later in IBP’s ownership that a union was getting traction. Soon after a sale to Tyson. I’m not close enough to it now to know whether it’s a union shop or organizing that way. It would be true to history though.
I do feel very bad for Perry and the families affected. This on top of what happened at the school this winter.
Perry was far enough away from Des Moines to support an Alco, Pamida, Hy-Vee & Fareway at one time. It also had the county hospital that was quite functional and equipped. The dynamics and viability of small towns in Iowa has changed so much.
I do feel very bad for Perry and the families affected. This on top of what happened at the school this winter.
Perry was far enough away from Des Moines to support an Alco, Pamida, Hy-Vee & Fareway at one time. It also had the county hospital that was quite functional and equipped. The dynamics and viability of small towns in Iowa has changed so much.
I am also in this industry, and can chime in with some knowledge, although just enough knowledge to be slightly above dangerous...
There are fewer hogs, and projected to be fewer in the future; perhaps not overall, but available to Tyson, due to the merger @corwags mentioned below (Wholestone & Prestage own the hogs). If I had to guess this was a key underlying factor:
I know of no plants that use rail service for hog delivery in the entire nation; although many do for outgoing rendering materials. They may exist, but none that I am aware. There would actually be large logistical problems and inefficiencies to do so. Most of these processing plants happen to be surrounded by hog farms. One would have to truck the hogs to the train depot; might as well just truck them straight to the processing plants and skip an extra process or three in doing so.
I think CJ is one shift only also iirc. And was in far worse physical condition the last time I was there IMO. Perry just completed a $44M project in late 2018. Also I said earlier that Perry was strictly a one shift plant which is incorrect. They’ve had B-Shift ham and loin boning lines for quite a while I forgot about.
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What does this mean?
Any more usually means "no longer". Are you saying steaks aren't scare?
Wasn't he just pointing out that beef costs more comparatively, they get them less often?
"Anymore" meaning presently. Like when Yogi Berra said, "Nobody goes there any more. It's too crowded."
I never said they take deliveries of hogs by rail. No one ships livestock by rail anymore. That is why they are build near the farms. I said rail service.
They definitely ship outgoing by rail, both byproducts and frozen meat products. (I have handled a lot of rail cars from multiple Tyson Plants including Perry when rail was still there, as well as Hormel products from frozen storage warehouses.)
Most of the frozen products that ship by rail go to the coast, for international shipping, a lot to China.
Byproducts go all over by rail, a lot to make your wife's makeup etc.
Again, I would not say it is is the main reason, but it could be one issue. If you have 5 plants and 4 have rail service, while 1 does not, and will not. Which ones are going to get upgraded and other investments? Esp. if you utilize the rail service or at least hope to, or want to have it available if needed/wanted.
While rail is not as important in some sectors, it is still a very important aspect and having it definitely increases the value of industrial property.
I have heard rail is not needed anymore, etc. that everything ships by truck. But then you realize 1 rail car is 3-5 semi loads, and certain commodities would not be able to ship in enough quantity to make shipping long distances by truck feasible. One Unit grain train is 350-500 semi loads. Some elevators ship a unit train a week, 2 to 3 times a week during certain seasons. No way there would be enough trucks to handle that volume over a long distance. I know everyone sees the piggy back and stack trains with semi trailers and shipping containers on them. Those handle hundreds of trucks worth of shipments, and have a guarantee shipping time. I believe its guaranteed to be less than 48 hours from LA to Chicago. And they handle everything from Fireworks to TVs. There just are not enough trucks or drivers to replace the rails.
Same can be said with something like ethanol. Trucks bring in the grain from short distances, maybe haul out some of the distillers grain short distances. But most of the ethanol and distillers grain is shipped by train, hundreds of cars per week, per plant. Right now the carbon dioxide is bled off into the air, because there is not a good way to ship it, hence the plan for a carbon pipeline. Any other way would be cost prohibitive for the value of the carbon dioxide and the volume needed.
Currently the number of cattle in the USA is the lowest in about 75 years. I believe it is the lowest since 1950 or 51, with no rebound in sight.
This is/will make beef prices continue to skyrocket, while availability decreases.
Edit: add link
Nation's cattle numbers lowest since 1951. What does that mean for farmers and consumers?
Will tightened beef cattle numbers drive up demand and prices for beef?
www.wisfarmer.com
I can't stand Pork at all - it's taste, it's ease of being dry, texture, etc... with the exception of bacon, which is God's greatest gift to humanity. So I don't watch it's prices at all.
Are prices that much lower than beef? Is it mostly because of the abundance of pigs in Iowa? With the premium on beef, why is the supply decreasing rather than being more lucrative and therefore increasing?
Are prices that much lower than beef? Is it mostly because of the abundance of pigs in Iowa? With the premium on beef, why is the supply decreasing rather than being more lucrative and therefore increasing?
I pretty much stick to BBQ and smoked pork anymore. The quality of pork out there isnt great to me.
And it may sound strange but I can taste the confinement in the pork, when just pan fried etc things like chops etc all have a hint of Hog Manure in the taste to me anymore. It may be something in my head but I just can taste/smell it whenever I eat a pork chop etc.
Smoking etc gets rid of that and tastes way better anyway.
But yes pork is significantly cheaper than beef.
About $2 for an 8oz pork chop.
About $10 average for a 8oz steak
Ground pork is about $2 per pound cheaper than the cheapest ground beef.
Triump in St Joes has taken a major chunk of the Japan exports. They focused on them when the plant was built. I’m not sure about their plant in Sioux City and where they send most of theirs.
