Missouri poultry farmers are taking legal action against Tyson Foods following the closure of the producer’s Dexter, Missouri, processing plant.
The lawsuit alleges that Tyson breached its contract and committed fraudulent misrepresentation after the growers entered into millions of dollar in debt to update and maintain their broiler and broiler breeder farms at Tyson’s request.
The farmers claim Tyson knew as early as November 2021 that it would shut down the processing plant, but did not tell its growers in that area, and led them to believe the facility was staying in operation. In January 2024, egg producer Cal-Maine Foods announced it was purchasing the facility and planned to convert it into an egg processing plant.
Tyson originally announced the closure of the Dexter plant in August 2023, along with three more of its processing facilities, during its third quarter earnings call for the fiscal year 2023.
Because chickens can only be transported 45 miles, according to the lawsuit, and there are no other processors in the area, the growers say their only options are to shut down their farms or take on additional debt to convert them to layer farms to support Cal-Maine’s future business in the area.
In Cal-Maine’s press release concerning the acquisition of the plant, it said it expects to enter into agreements with some of Tyson’s former contract farmers.
In an interview with news outlet kfvs 12, Russ Oliver, the farmers’ attorney, stated:
“Our egg layer farmer clients have been put through a torturous five months since Tyson’s August 7th closure announcement. They have millions of dollars of debt because of Tyson’s false promises. Cal-Maine’s proposal is to pay these farmers roughly half of what their contract with Tyson paid for a dozen eggs.”
Oliver continued: “Generations of farmers have raised chickens for Tyson. Tyson strong-armed these farmers into taking on debt, and now the farmers are being strong-armed into taking terrible deals. This is wrong, and we will not stand for it. That is why we filed this lawsuit.”
