A Smithfield Foods pork processing facility located in South Dakota will shut down for the meantime for disinfecting after it has been reported that over 80 workers have been infected with the coronavirus, the company disclosed on Thursday.
Smithfield Foods is considering stoppage of operations starting Saturday at a large area of the Sioux Falls factory, then to close it entirely the next day and Monday. The company, headquartered in Virginia, announced it was going to deep-clean the facility and put up physical divisions to "increase social distance."
The state's health authorities on Wednesday said that more than 80 plant workers have tested positive of COVID-19. The Agriculture Department said there is no proof yet that the coronavirus is being spread by food or through packaging.
The meat processing facility has a workforce of 3,700 and supplies almost 130 million servings of food per week, or approximately 18 million servings per day, in the United States alone, according to the company, which is owned by the Chinese WH Group Ltd.
Tyson Foods Inc disclosed Tuesday that it shut down a pork plant in Columbus Junction, Iowa, after over 24 cases of coronavirus involving workers at the facility. American beef facilities run by JBS USA and the National Beef Packing Company have also halted operations.
Based on figures provided by S&P Global Market Intelligence, shares of Tyson Foods fell almost 15 percent last month. That has left stock trading near five-year lows. Throughout March, the S&P 500 did not do any better, dropping 13 percent on the sudden confusion caused by the pandemic on investors.
The health and safety of frontline staff is the main concern of food producers in the US, especially of Tyson Foods. The global health scare has descended on Tyson Foods' doorstep, according to a report in early April. The stock price takes "a back seat to human experiences," but latest data suggests that 2020 may be a difficult year for dividends.
According to Smithfield chief executive officer Kenneth M. Sullivan, the company takes the utmost care and steps "to ensure our employees' safety and well-being - with an even greater focus on our vital role in the ongoing supply of food to American families."
The Sioux Falls plant processes fresh pork, deli meats, hot dogs, bacon, and other smoked good. More than 100 of its total employees are over 65 years old, Keloland News reported.
The United Food and Commercial Workers, meanwhile, has called on the Centers for Disease Control and Prevention (CDC) to adopt new health guidelines for many sectors, including meat packaging.
