Craig Letch, director of food quality and assurance for Beef Products Inc., declined to discuss financial details, but said business has taken a “substantial” hit since social media exploded with worry over the ammonia-treated filler and an online petition seeking its ouster from schools drew hundreds of thousands of supporters. The U.S. Department of Agriculture has decided school districts may stop using it and some retail chains have pulled products containing it from their shelves.
Beef Products will suspend operations at plants in Amarillo, Texas; Garden City, Kan.; and Waterloo, Iowa, Letch said. About 200 employees at each of the three plants will get full salary and benefits for 60 days during the suspension. The company’s plant at its Dakota Dunes, S.D., headquarters will continue operations.
The company, meanwhile, will develop a strategy for rebuilding business and addressing what Letch called misconceptions about the beef the company makes.