Cargill's Fort Morgan, Colo., Beef Plant Initiates Lockout

May 20, 2026

Concrete barricades stand at the entrance to the Cargill beef plant in Fort Morgan, Colo., after weeks of inactivity. A Cargill representative did confirm that Cargill initiated a lockout on May 20, 2026, at the Fort Morgan beef facility following months of bargaining and an employee vote against the latest contract offer.

In a statement, Cargill spokespersons said, “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, according to the company, was initiated because continued uncertainty around a potential work stoppage creates challenges to operating safely, responsibly and reliably. The company said they respect employees’ right to vote and remain committed to reaching a ratified agreement with the union.

Local 455 Teamsters said over 1,700 employees were locked out, a number that represents 20% of Ft. Morgan’s labor force. In a statement, Local 455 said no cattle have been brought to the facility in nearly 30 days.

Dean Modecker, Teamsters Local 455 Secretary-Treasurer, said the company has held its employees -- many from Haiti, Somalia and Central and South American countries -- hostage to a substandard contract offer that provides little change or improvement. Members rejected the company's last, best and final offer by a vote of 1388-252 on Tuesday. The members' contract expired on Feb. 22. 

"Our members are and have been prepared to sit at the table and reach a deal that's in the best interest of their families, Cargill customers, and the Fort Morgan community," said Modecker.

Cargill said the most recent offer is in addition to an increase in payroll of $32.6 million since 2018.

Cargill said they have no way of predicting the duration of the lockout. 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.

Source: Western Ag Network