Smithfield Foods, Inc. a Chinese-owned company, announced that it will cease all harvest and processing operations in Vernon, Calif., and reduce its sow herd in its Western region in early 2023.

“The company will decrease its sow herd in Utah and is exploring strategic options to exit its farms in Arizona and California,” the company said.

“Smithfield harvests only company-owned hogs in Vernon. Smithfield will service customers in California with its Farmer John brand and other brands and products from existing facilities in the Midwest.”

The company also said it “is taking these steps due to the escalating cost of doing business in California.”

Smithfield said it reached an agreement this week with the United Food and Commercial Workers International Union, the International Brotherhood of Teamsters and the International Union of Operating Engineers as part of its plan to close the Vernon facility.

The company noted it is providing assistance to all impacted employees, including relocation options to other company facilities and farms as well as retention incentives to ensure business continuity until early next year.