High Costs In California Cause Largest Pork Company in the US To Shut Down, Could Lead To Higher Food Prices

Smithfield Foods has announced that they will shut down their Vernon, California, plant because of the high costs associated with doing business in what’s considered to be the most liberal state in the nation.

In a news release. the food processing corporation said they will

“Cease all harvest and processing operations in Vernon, California in early 2023 and, at the same time, align its hog production system by reducing its sow herd in its Western region. Smithfield is taking these steps due to the escalating cost of doing business in California.”

A spokesperson for Smithfield Foods added,

“It’s increasingly challenging to operate efficiently there.”

California is stacked with costly regulations and some of the highest taxes in the nation. Add that the to supply chain issues and record-high inflation and some companies say they can no longer afford to stay in business in what used to be the Golden State.

In addition, according to the company’s spokesman, utility costs in California are nearly 4 times higher per head than the utility costs in the 45 other plants run by Smithfield in other states.

Furthermore, according to Monroe, California’s regulatory environment has made it difficult for the pork processor to do business there.

The closure of the company comes as food prices nationwide have skyrocketed to record levels, inflation is at a 40-year-high, gas prices have spiked to never before seen levels and American moms scramble to feed their babies amidst the ongoing baby formula shortage.

Many businesses say they left California because of the stifling covid-19 regulations and democrat policies that have led to record high crime and homelessness in the state.

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