Fort Morgan Labor Update

Update on Fort Morgan Negotiations

Recommended Settlement Not Ratified

We are disappointed that employees voted against the union-recommended settlement. We are evaluating next steps and options and remain open to considering proposals from the union that align with the economic framework previously discussed.

Lockout and Operational Priorities

On May 20, 2026, a lockout began at Cargill’s Fort Morgan, Colorado, beef facility after months of bargaining and following the union-represented employees vote against the contract proposal.

Cargill made the difficult decision to initiate a lockout because we cannot operate the facility safely and responsibly amid continued uncertainty of a potential work stoppage. Beef processing involves live animals and highly coordinated operations. A sudden stoppage during production could create risks related to food safety, animal welfare and could result in extensive food waste.

Our immediate priorities remain:

• Maintaining safety at and around the facility
• Managing operations responsibly
• Minimizing disruption for cattle suppliers, customers and the local community
• Continuing to serve customers through Cargill’s broader supply chain network

A lockout was not the outcome Cargill wanted. Cargill remains committed to bargaining in good faith and has continued to engage with the union through bargaining discussions and proposal exchanges.

Economic and Operating Context

Like other beef operations, Fort Morgan is operating in a challenging economic environment, with costs currently exceeding returns. The Fort Morgan facility is operating during one of the most challenging cattle cycles in roughly 75 years. Tight cattle supplies have driven record cattle costs and higher beef prices. Against this backdrop, Cargill and other processors are currently incurring hundreds of millions of dollars in losses across their beef operations. 

That context does not change our respect for employees or our commitment to bargaining in good faith, but it underscores the importance of reaching an agreement that is sustainable for employees and the facility over the long term.

Since 2018, Cargill has made meaningful investments in Fort Morgan employee pay: 

• Base wages have increased from $15.35 to $23.50
• Average wages have increased from $16.22 to $24.78, an increase of approximately 53%
• Annual payroll has increased by approximately $32.6 million, from about $64.5 million to $97.1 million

Cargill has also made broader investments in Fort Morgan in support of our employees and the community, including housing initiatives near the plant and facility improvements.

Next Steps:

Cargill is evaluating potential next steps and options. We remain open to considering proposals that address employee priorities and align with the economic framework previously discussed with the union.

Our goal remains to reach an agreement that allows the facility to return to normal operations safely and productively. Throughout the negotiations, Cargill and the union have remained engaged through bargaining discussions and proposal exchanges.

Cargill remains open to discussing how the contract package could be structured differently within the economic framework previously communicated to the union to address employee priorities and support a stable future for the Fort Morgan facility. We continue to welcome proposals that could help move us toward an agreement. 

Adjusted Operations in Fort Morgan

Before the lockout, Cargill adjusted production schedules after the union indicated it could call an immediate work stoppage during negotiations. Cargill made the difficult but necessary decision not to run production to help prevent food waste, protect animal welfare and safeguard food safety.

Cargill made the difficult but necessary decision not to run production to help prevent food waste, protect animal welfare and safeguard food safety.

While production was paused and before the lockout began, Cargill continued paying employees consistent with the weekly guaranteed requirements outlined in the expired contract.

Cattle originally scheduled for Fort Morgan have been redirected to other Cargill facilities so the company can continue honoring commitments to producers and customers, and under current operating plans, we do not expect material impacts to either group. We will continue to monitor the situation closely and adjust as needed.