JBS workers have gone on strike at the company's plant in Greeley, one of the largest beef plants in the US, according to reports from the Wall Street Journal and Grocery Dive.
The strike comes as US beef prices soar to record highs, with the Greeley plant capable of handling up to 6,000 cattle per day, roughly 7% of JBS' total beef processing capacity in the US. Kim Cordova, president of UFCW Local 7, the union representing the workers, stated that wages have failed to keep up with the pace of inflation in Colorado.
Cordova said, "JBS can afford to do better." The impact of the work stoppage on consumer beef prices is unclear, but it's unlikely to drive up consumer costs further due to excess processing capacity amid a severe cattle shortage.
Company Response
JBS said the company is "operating the facility to the best of our ability this week" and will continue to pay workers who show up to the Greeley facility. A JBS spokesperson stated, "We will continue scaling operations this week as more team members return."
Industry Impact
Many beef packers, including Tyson and Cargill, are dealing with excess processing capacity and have closed facilities due to a severe cattle shortage. Despite recording record revenue for beef in its last quarter, JBS recorded a 50% decline in gross profit due to the higher cost of livestock.
Possible Intervention
The prospect of a JBS plant slowdown "has traders worried," according to an investor note from ADM, which noted that President Donald Trump could step in to block the strike using the Defense Production Act.
