USDA Photo by Lance Cheung.

Unionized workers at Cargill’s Fort Morgan, Colorado, beef processing plant voted to approve a new contract. The agreement resolves a labor dispute and clears the way for the facility to resume cattle slaughter after a pause since April. A new five-year contract raises base pay for workers by $1.40 per hour in year one. Employees are set to return around August 24, with slaughter operations resuming the week of September 7, restoring a key piece of processing capacity to the region.

The Cargill plant’s return is welcome news for cattle producers, with the U.S. herd at its smallest size in 75 years and beef prices at record highs. On the heels of the news that Tyson announced their intention to sell or close three of its U.S. beef and processing plants, the restored Cargill capacity at Fort Morgan adds stability to the supply chain.

Read more on the Cargill plant news from Successful Farming.