Goldsboro Milling Co. begins phasing out production

After 31 years in business, Goldsboro Milling of Maxwell Foods, LLC began phasing out production on August 6 and will continue to phase out as the pigs in production move towards their market-ready weight. The prices received by Maxwell Foods for its products made this decision necessary. The company will be shuttering operations in a phased approach over time based on growing cycles. Current grower contracts will be honored.

“They should be totally phased out of production by mid-2021,” said Eve Honeycutt, Extension Agent, Agriculture - Livestock, Lenoir and Greene.

COVID affected the food supply chain and the workforce in processing plants has slowed which also slowed the speed of production inside the plant. This backlog, along with extremely low pork prices results in low income for companies that raise meat animals. 

The NC Pork Council released a statement that contained, “We are deeply saddened that the persistent and untenable economic conditions mean that Maxwell Foods has reached the difficult decision to cease hog production operations by the middle of 2021.”

Maxwell Foods and its network of family farmers have been an important part of Eastern North Carolina communities and their economic stability. The Maxwell family, its executive team, its employees and its farm family system have all been at the forefront of continued progress in producing safe, quality and affordable pork products in North Carolina.

“Companies can only stand to lose money for so long,” said Honeycutt.

Goldsboro Milling has over 500 office employees, in addition to contract growers that have dedicated their careers to the company. 

“All of these individuals will be economically devastated during a very bleak economy. The contract growers who grow hogs for the company will be left with vacant barns. These barns and their property may carry debt, and taxes still have to be paid. This is a very complex and sensitive issue for our community,” said Honeycutt.

The farmers are trying to find other companies that they could work for, but none of them are doing well during this pandemic. It will be difficult for them to overcome the potential financial blow. 

“NCSU and NC Cooperative Extension, as well as the NC Pork Council are planning a series of meetings for these growers to help them understand their options from a financial and farm management standpoint. More information on those meetings will be coming soon,” said Honeycutt.