FORT MORGAN, CO (RFD NEWS) —A labor dispute at Cargill’s Fort Morgan, Colorado, beef plant remains a market watch point because the facility is a major processor in a tight cattle supply environment. The lockout began May 20 after union-represented employees rejected the company’s latest contract proposal.
Teamsters Local 455 says more than 1,700 workers are seeking better wages, health care, and safety protections. Cargill says its offer included bonuses, predictable wage increases, retirement provisions, and an estimated $33.4 million in employee investment over five years.
Cargill says it initiated the lockout to avoid a sudden work stoppage during live-animal processing, citing food safety, animal welfare, and food-waste concerns.
The company says cattle scheduled for Fort Morgan have been redirected to other Cargill facilities in Dodge City, Kansas; Schuyler, Nebraska; and Friona, Texas.
The dispute comes as Cargill has invested in automation, employee housing, and yield technology at Fort Morgan.
A Cargill representative provided the following statement to RFD NEWS:
“We can confirm that Cargill initiated a lockout on May 20, 2026, at our Fort Morgan, Colorado, beef facility following months of bargaining and an employee vote against the latest contract offer.
“This was a difficult decision and not the outcome we wanted. We believe our proposal is fair and competitive, representing an estimated $33.4 million investment over five years. While negotiations continue, we remain focused on safety, responsible operations, and serving customers through Cargill’s broader supply chain network. Under current plans, we do not expect material impacts to producers or customers.
“The lockout was initiated because continued uncertainty around a potential work stoppage creates challenges to operating safely, responsibly, and reliably. We respect employees’ right to vote and remain committed to reaching a ratified agreement with the union.”
Both parties report ongoing negotiations with ongoing impacts to workers, cattle suppliers, customers, and the Fort Morgan community.
Cargill issued an updated https://www.cargill.com/page/fort-morgan-labor-updatesstatement on Friday morning, saying that a meeting between company and union officials has been set for Wednesday, May 27:
“Our goal remains to reach an agreement that allows the facility to return to normal operations safely and productively as soon as possible. After the union contacted us on May 20, we worked with them to schedule additional bargaining and are now set to meet on May 27. As we have told the union, we remain open to reviewing any counterproposals they bring forward and would welcome a joint meeting with a mediator.
“In the meantime, we are using our broader supply chain network to help minimize disruption and continue serving customers.”
The next read on the U.S. cattle industry will be the USDA’s next Cattle on Feed Report, slated for release on Friday, May 22, at 3 p.m. ET.
