3,800 Workers Walk Out of Colorado Beef Plant and Now America’s Supply Could Take a Major Hit [Video]

Tensions are rising in the U.S. beef industry as a major labor dispute threatens to tighten an already strained supply chain.

Video

Roughly 3,800 workers at a JBS plant in Greeley, Colorado, walked off the job Monday, launching a planned two-week strike over what union leaders describe as unfair labor practices. The United Food and Commercial Workers Local 7 says employees are pushing for higher wages, arguing the company’s current offer does not keep up with Colorado’s rising cost of living.

The timing is critical because the cattle industry is already dealing with historically low herd levels. Ranchers have reduced herds due to drought and high production costs, which has pushed beef prices to record highs. Now, this strike could add even more pressure to supply.

Industry analyst Chris Lehner noted, “It is likely beef buyers have been increasing contracting beef ahead of it, but it will also limit the amount of beef available on the daily market.” Meanwhile, U.S. Department of Agriculture data shows cattle slaughter is down 10% compared to the same period last year.

JBS says it can offset some disruption by shifting production to other plants. However, the broader industry has already seen cutbacks, including facility closures and reduced operations by major meatpackers.

Union president Kim Cordova said negotiations stalled after months of talks, adding that JBS is “putting the squeeze” on workers and the supply chain. The company, however, maintains its offer is “strong, competitive” and aligned with national agreements that provide long-term stability.

With supply already tight, this labor action could ripple quickly through grocery prices nationwide.