ConAgra To Close Batesville Facility; Ozark Mountain Poultry Deal In Works (UPDATED)

A chicken processing plant in Independence County will close its doors this summer, with jobs lost in the process – maybe.

Talk Business & Politics content partner, KAIT Ch. 8, reported that the ConAgra plant in Batesville will lay off 250 employees in July. Details as to why have been scarce, however, a local attorney who has worked with economic development issues said news of the layoffs began circulating late last week.

Bob Stroud said some of the employees were told Friday about the situation. He said people in Independence County are hopeful about regaining some of the jobs, possibly with another poultry related company.

The county has been known for poultry processing for decades, with the industry providing key jobs in the Batesville area. Batesville is also a regional hub for several other counties, including Izard, Sharp and Stone counties.

Attempts to reach ConAgra officials Monday morning were not successful. However, the company’s communications and external relations director, Dan Hare, told KAIT that the decision was made after company officials assessed the company’s operations.

Hare told KAIT that they found that making the product at another location would help make the company operate efficiently and remain competitive.

The employees who will lose their jobs will have the opportunity to apply for jobs at other factories or will be eligible for severance pay in July, Hare told KAIT.

UPDATE: That closing Batesville poultry plant may have new life, however, and a new nearby mill is coming online.

Ozark Mountain Poultry, a regional competitor, says it hopes to close a deal to take over the ConAgra plant.

“We are pleased to expand our investment in Arkansas and contribute to the state’s poultry industry with the intended purchase of the facility located adjacent to our Batesville operation,” Ed Fryar, Ozark Mountain Poultry CEO, tells Talk Business & Politics. “We plan to retrofit the building to accommodate a new poultry processing line. This will allow us to expand rapidly and with minimal disruption to our current processing operation. Our target completion is scheduled for early 2016.”

Fryar also added, “This investment is part of the company’s overall growth strategy. OMP is currently also constructing a new feed mill in Magness, Arkansas, to support its increased operations. The feed mill will be completed by early 2016 as well.”

A spokesperson for OMP said she was uncertain at this time how employment could be affected if the deal to take over the ConAgra facility is successful.

“We will need new employees to staff this new processing line; however, at this time, we have not finalized our hiring plans. Former ConAgra employees would be welcome to apply for any of our positions that become available,” she said.