The plant was purchased hurriedly last year in spite of allegations of anticompetitive practices. However, IBP filed a federal civil lawsuit in April 1997 seeking to return the plant to its previous owners and to recover its investment. The federal suit alleges that the prior owners misrepresented the environmental condition of the plant and that the sale should be set aside on that basis. Cows normally purchased for processing at the Palestine facility will be routed to other IBP-owned beef boning facilities (Sealy, TX; Gibbon, NE; Tama, IA) after the Calhoun plant closes.
Calhoun Packing produces boneless cuts of beef that are sold primarily to the food service industry to produce hamburger, sausage and deli meats.
Meat Industry Insights News Service
P.O. Box 553
Northport, NY 11768
Phone: 631-757-4010
Fax: 631-757-4060
E-mail: sflanagan@sprintmail.com
Web Site: http://www.spcnetwork.com/mii