Fort Morgan Labor Update

A lockout began at Cargill’s Fort Morgan, Colorado, beef facility on May 20, 2026.

Cargill remains focused on reaching an agreement while maintaining safety at and around the facility and minimizing disruption for cattle suppliers, customers and the broader community.

Cattle scheduled for Fort Morgan have been redirected to other Cargill facilities so Cargill can continue honoring commitments to producers and customers.

Employees determine whether to ratify a contract offer through the union’s voting process.

Cargill respects workers’ right to make their voices heard. Our focus remains on continuing discussions in good faith and working toward an agreement that supports employees and the long-term success of the facility.

Cargill’s goal has been to reach an agreement and avoid disruption. After continued bargaining, an unratified contract proposal and continued uncertainty around a potential work stoppage, Cargill made the difficult decision to initiate a lockout.

This was not the outcome we wanted. Cargill remains committed to reaching an agreement through continued good-faith negotiations with the union. In the meantime, cattle originally scheduled for Fort Morgan have been redirected to other Cargill facilities so the company can continue honoring commitments to producers and customers. 

Cargill’s proposal included bonuses and a five-year agreement designed to provide employees with stability and predictable wage increases over the life of the contract. It represents an estimated $33.4 million investment in Fort Morgan employees.

Cargill believes the proposal was fair and competitive and reflects the company’s long-term commitment to, and appreciation for, Fort Morgan employees.

Safety remains a core priority at Fort Morgan, and Cargill has a longstanding commitment to employee safety in partnership with the union. The contract has long included a joint union-management Safety Committee, made up of union-represented employees and members of management, that meets regularly to help promote a safe work environment and raise awareness of key safety risks.

During negotiations, the union’s only safety-related proposal was to expand the annual $150 work-related footwear voucher to all employees. Cargill’s latest offer included expanding the voucher to employees in roles requiring work-related boots, including shipping, rendering, yards and maintenance.

No other safety topics were raised during negotiations. Cargill continues to invest in employees and the Fort Morgan facility, including employee benefits, housing initiatives and significant facility improvements over the past two years.

Cargill is committed to providing employees adequate restroom access and treating employees with dignity and respect. Employees have scheduled breaks and meal periods during each shift, as well as a process to request restroom access outside scheduled breaks.

Employees should notify a supervisor or lead and wait briefly for coverage before leaving their workstation. If the need is urgent and a supervisor or lead is not available, employees should notify a co-worker, use the restroom and return promptly.

Employees are not disciplined for following this process, which is shared during new hire orientation and employee meetings.

Cargill has made meaningful investments in employee pay at Fort Morgan over time. Since 2018, base wages have increased from $15.35 to $23.50, average wages have increased from $16.22 to $24.78, and annual payroll has increased by approximately $32.6 million, from about $64.5 million to $97.1 million. 

The current proposal builds on that progress with a five-year agreement designed to provide employees with stability and predictable wage increases over the life of the contract. It also represents an additional estimated $33.4 million investment in Fort Morgan employees.

Under current operating plans, we do not expect material impacts to customers or producers. We are using our broader supply chain network to support producers, maintain a reliable beef supply and continue serving grocery stores, restaurants and other customers responsibly.

Beef processing involves live animal movement and a highly coordinated supply chain. Disruptions can create challenges beyond the facility itself, which is why we adopt continuity plans that minimize impact on employees, suppliers, customers, and the broader community.

Cattle scheduled for Fort Morgan have been redirected to other Cargill facilities so Cargill can continue honoring commitments to producers and customers. 

Cargill is using its broader supply chain network to help minimize disruption. Cargill facilities in Dodge City, Kansas; Schuyler, Nebraska; and Friona, Texas, are helping absorb capacity and support Fort Morgan customers and producers.

Cargill’s goal is to reach a ratified agreement that supports employees and the long-term success of the Fort Morgan facility. At this time, however, we cannot predict how long the lockout may last.

We will be working with the union on next steps once we hear more from them. 

Under our current plans, we do not expect material impacts on customers or producers. We are using our broader supply chain network to support producers, maintain a reliable beef supply and continue serving customers responsibly. 

We will continue to monitor the situation closely and adjust as needed. 

If an agreement is reached, Cargill’s focus will be on supporting a safe return to normal operations at the Fort Morgan facility. Restarting beef processing operations requires careful coordination across employees, livestock scheduling, food safety, and supply chain operations.