Cargill has stopped paying approximately 1,700 employees at its beef processing facility in Fort Morgan, Colorado, as a labor dispute between the company and Teamsters Union workers intensifies.
According to the union representing workers at the plant, Cargill halted employee pay Wednesday after suspending cattle slaughter operations at the facility roughly a month ago. The company said it initiated a lockout after workers rejected what Cargill described as a fair contract offer.
Cargill said the proposed agreement represented an estimated $33.4 million investment in employee wages and benefits. Union officials, however, said workers are continuing to push for higher wages as inflation and rising living costs continue to strain household budgets.
The dispute comes at a difficult time for the U.S. beef industry. Beef prices have climbed to record highs in 2026 as consumer demand remains strong while the nation’s cattle herd has fallen to its lowest level in 75 years.
Industry analysts said meatpackers have been under increasing pressure from limited cattle supplies and higher livestock costs. While higher beef prices have helped offset some expenses, reports indicate rising cattle prices have outpaced gains in beef markets, squeezing processing margins.
The Fort Morgan plant is one of Cargill’s major beef processing facilities and plays a significant role in the regional cattle industry. Any prolonged disruption at the plant could add further pressure to an already tight beef supply chain.
Neither side has announced when negotiations may resume.