JBS to Shutter Southern California Beef Processing Plant

The closure is not expected to impact the already-strained U.S. beef market, according to an expert.

Cows graze at the Stemple Creek Ranch in Tomales, Calif., on April 24, 2014. Justin Sullivan/Getty Images

JBS Foods, the leading producer of beef in the United States, plans to close its Swift Beef Company processing plant in Southern California on Feb. 2, the company confirmed Monday.

The company filed a notice with the California Worker Adjustment and Retraining Notification (WARN) system earlier this month, notifying the state of its plans, which will affect 374 employees at the 170,000-square-foot plant, located about an hour east of Los Angeles in Riverside, California.

The closure was seen as a non-event in the U.S. beef market, which has seen record prices this year driven by a historically tight cattle supply.

The plant does not slaughter cattle, but instead produces ready-for-sale meat for grocers, according to a statement.

The closure is part of the company’s strategic initiative to “optimize its value-added and case-ready business and simplify operations across its network.”

JBS is moving production from the Riverside plant to other JBS facilities, ensuring a continuity of supply and service.

“JBS is committed to supporting impacted team members through this transition,” spokeswoman Nikki Richardson told The Epoch Times. “Opportunities will be made available at other JBS facilities, including relocation support for those interested.”

Employees who don’t relocate will be eligible for a 60-day notice period. Others who stay with the company will be offered incentives, according to JBS.

“The company remains focused on delivering high-quality products and dependable service while strengthening its operational footprint to meet evolving market demands,” Richardson said.

Brad Kooima with the leading agricultural brokerage firm Kooima Kooima Varilek spoke with the industry’s Farm Journal about the JBS closure, indicating it was not a market-moving event.

“We don’t think it represents a significant thing to any part of the beef chain,” Kooima said. “This is strictly a place where they package beef. I don’t think it’s a big deal and I don’t think the market does either, from the way it reacts.”

JBS USA, a subsidiary of the Brazilian JBS S.A., is headquartered in Greeley, Colorado.

Americans continue to deal with persistently high food inflation, including a steep increase in beef prices.

In October, President Donald Trump proposed executive actions to drive down the price.

Trump removed some tariffs for various products, including beef, last month.

A National Association for Business Economics panel said last month that it is predicting overall inflation will ease gradually in 2026, with a rate of 2.6 percent late in the year, down from 2.9 percent at the end of 2025. That would still be above the Federal Reserve’s 2 percent target.