The Union Pacific Railway Company was ordered to continue to carry out specific service commitments to Foster Farms, by the Surface Transportation Board (STB) in a July 1 decision.
The decision was made following an earlier emergency service order, issued on June 17, after Foster Farms filed a petition, seeking intervention from the STB. The poultry company stated that it had been getting unreliable service from Union Pacific, which delivers corn from the Midwest to Foster Farms’ feed mills in Traver, California, and Turlock, California. Foster Farms, in the petition, said it believed an emergency service order was necessary to alleviate harm to its business and the poultry and other animals that depend on the distribution of corn meal supplied by Foster Farms.
Under the new order, Union Pacific must file daily status reports to the STB, hold weekly conferences with STB staff, and inform both the STB and Foster Farms in writing of any need to deviate from its proposed schedules.
According to a press release from the STB, Union Pacific has restored its service to a level that enables Foster Farms to feed its birds and maintain its obligations to customers in the short term.
The board also extended the earlier issued emergency service period, so it will now last until July 17.
Foster Farms on June 7 was acquired by Atlas Holdings, a Connecticut-based company that operates 25 companies and employs approximately 50,000 people. Donnie Smith, the former CEO of Tyson Foods, came out of retirement to become Foster Farms’ new CEO and chairman of the board.
Foster Farms, according to the WATTPoultry.com Top Companies Database, is the 12th largest broiler producer and 14th largest turkey producer in the United States. It operates facilities in California, Oregon, Washington, Alabama and Louisiana. The company’s headquarters are located in Livingston, California.
