A large Tennessee chicken processing plant has shut down suddenly, citing soaring costs amid record-high inflation.
Georgeโs Inc., one of the nationโs largest vertically integrated chicken producers, is closing down one of its plants in Campbell County.
The news came as a shock to employees and locals, with around 200 jobs being at risk over the move, ย WVLT-TV is reporting.
The news comes as America is also facing unprecedented food shortages as the economy teeters on the brink of recession.
Campbell County Mayor E.L Morton told WLVT-TV that he was working to ensure the plant would remain open, so the closure would not hurt employeesโ livelihoods.
โI have contacted the Tennessee Economic and Community Development staff to request assistance in keeping the plant open or facilitating a sale to another operator,โ Morton said.
โI have requested Governor Leeโs assistance as well.โ
โMy primary concern is for the welfare of the dedicated workers who have been the backbone of this operation,โ Morton said.
“Our prayers go out to them, as well as our very best efforts to keep them employed in Campbell County.”
Georgeโs had purchased the plant from Oklahoma City-based Lopez Foods in 2017, according toย TalkBusiness.
Before the sale, the plant had employed 285 employees.
It produced fully-cookedย pork, beef, and turkey products that were then delivered to the retail, food service, and convenience store sectors until Georgeโs took over, according to TalkBusiness.
The Caryville plantโs closure comes as food prices have been rising in the country, both due to inflation and Russiaโs war against Ukraine, which has had effects on the world crude oil,ย fertilizer,ย and agriculture markets.
Georgeโs did not issue a statement to publicly explain the closure.
The U.S. Bureau of Labor Staticsย reportedย earlier this month that the Consumer Price Index โ a measure for inflation that takes into account typical consumer expenses, including food โ rose by 8.6 percent (without seasonal adjustment) over the last 12 months.
According to aย BMO Real Financial Progress Index report released May 31, Americans were responding to the growing inflation by changing their food and purchase habits.
The report found that 42 percent of Americans were changing the way they go grocery shopping, looking for cheaper items instead of fixating on brand names and purchasing only essential items.
Also, โ46 percent are either dining out less or consciously spending less when dining out,โ the report said
Earlier this month, another major food company announced it would shut one of its plants in the country.
Citing high business costs and strict regulations in California, Smithfield Foodsย announced on June 10 that it would close its Vernon, California, plant and decrease operations in California, Utah, andย Arizona.
Smithfield, however, said it had reached a deal with unions to ensure the closure would have minimal impact on workers.
Based in Springdale, Arkansas, Georgeโs is one of the nationโs oldest poultry companies dating back to the 1920s.
According to the companyโsย website, the company deals in packaged chicken for retail, fully cooked products โ such as burgers and sausage patties โ and food service.
While specializing in poultry, the company has also been working to diversify its offerings, the website stated.