Foster Farms Shuts Down California Turkey Facility, Affecting Over 500 Jobs

Foster Farms has announced the permanent closure of its fresh turkey processing plant in Central California, which will result in the layoff of over 500 employees, as per a notice filed on February 28 with the state.

The decision to close the facility in Turlock, California, was driven by shifts in market demand.

This closure will impact 478 workers at the F Street location in Turlock, situated in Stanislaus County, approximately 100 miles east of San Francisco.

Additionally, the company will shut down two other facilities in Turlock—one for trucking live turkeys on C Street, and a feed mill located on West Main Street.

A total of 519 manufacturing employees in Turlock will lose their jobs permanently when the plant ceases operations on May 9, as indicated in the Worker Adjustment and Retraining Notification (WARN) Act notice submitted to California.

A press release quoted by the Turlock Journal on January 28 stated that Foster Farms does not intend to halt operations in California.

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“Foster Farms will maintain a strong presence in the Central Valley and will continue to be a significant employer in the Turlock area with its fully cooked poultry facility still in operation,” the press release noted. “No other Foster Farms facilities will be affected.”

Turlock City Councilwoman Rebecka Monez mentioned to the local newspaper that many of the affected workers are from her predominantly Hispanic district and indicated that the company has assured her about possible transfers to other facilities.

The family-owned business, based in Livingston, California, was purchased by private equity firm Atlas Holdings in July 2022.

Details regarding the transaction were not made public. Longtime industry leader Donnie Smith, previously CEO of Tyson Foods, was appointed as Foster Farms’ CEO and board chairman following the acquisition. He was succeeded by former Pilgrim’s Pride executive Jayson Penn in March of the previous year.

Founded in 1939 on a modest farm in Modesto, California, Foster Farms specializes in fresh, all-natural chicken and turkey products that are free from preservatives and additives, as stated on its website.

The company operates from California’s Central Valley, with ranches located in the Pacific Northwest, and employs over 12,000 individuals nationwide according to its website. Its main processing facilities are situated in California, Washington, Louisiana, Oregon, and Alabama.

The impending closures occur as nationwide demand for turkey products continues to decline. The U.S. Department of Agriculture (USDA) reported that the average price per pound of whole turkey dropped to $0.94 in 2024, compared to a peak of $1.55 in 2022.

Adding to the challenges for Foster Farms, the viral bird flu outbreak has resulted in significant financial losses for the U.S. poultry sector.

In addition, Foster Farms offers pre-marinated, ready-to-cook, and fully cooked products for consumers, retailers, warehouse clubs, and foodservice clients at its Turlock facility.

The Turlock plant was among three Foster Farms locations threatened with closure in 2013 by the USDA following an outbreak that sickened 300 individuals with a strain of salmonella Heidelberg, according to the federal agency.

The USDA issued a public health alert in October 2013 due to concerns related to the salmonella strain, which led to inquiries into raw chicken products at the company’s three California facilities, including Turlock.

In 2015, animal rights organizations targeted Foster Farms’ turkey production, with Animal Outlook claiming to have documented inhumane conditions at its processing plants.

The closure of the Turlock plant marks the second significant turkey processing facility to announce a shutdown in the United States this year. Cargill Inc. also stated plans to close its turkey plant in Springdale, Arkansas, by August 1, impacting around 1,100 employees, according to Reuters.

Cargill plans to redirect its production to processing facilities in Missouri and Virginia, as reported by the company.

“It is the right decision for the future of our turkey operations. Turkey continues to be a vital part of Cargill’s protein portfolio,” the company stated in an email to Reuters.