In less than a year, Tennessee’s food manufacturing industry has taken a massive hit. Three major facilities have either shut down or announced plans to leave the state, leaving hundreds jobless and raising concerns about the region’s economic stability.
This isn’t just a string of closures — it’s a warning sign for workers, farmers, and local economies across the state.
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This Article Includes
- 1 Related posts
- 2 Warren County man arrested in Pikeville on weapons and drug charges
- 3 Kentucky health director calls for more support after Laken Snelling case
- 4 Closure #1: Perdue Farms Cuts Jobs in Monterey
- 5 Closure #2: Monogram Foods Shutters Dickson Plant
- 6 Closure #3: Prairie Farms Dairy Closes Gallatin Facility
- 7 Three Companies, One Message
- 8 The Fallout Reaches the Farms
- 9 Tennessee Job Losses Keep Climbing
- 10 A Nationwide Trend
- 11 Impact on Consumers
- 12 Why It’s Happening
- 13 What’s Next for Tennessee
- 14 Summary
Closure #1: Perdue Farms Cuts Jobs in Monterey
In early 2025, Perdue Farms laid off more than 433 workers at its Monterey plant, which handles further-processed chicken.
While the facility hasn’t closed entirely, operations have been significantly reduced due to “changing customer needs.” The reality? Likely lower demand and increased outsourcing.
This is a major blow to the rural community, where poultry jobs drive much of the local economy.
Closure #2: Monogram Foods Shutters Dickson Plant
In April 2025, Monogram Foods permanently shut down its meat snack facility in Dickson, Tennessee, resulting in 237 layoffs.
The plant produced jerky, frozen appetizers, corn dogs, USDA bakery products, bacon, and other protein snacks.
The decision wasn’t performance-based — Monogram is restructuring its business by consolidating operations into larger, more efficient plants in other states, likely influenced by tax incentives and lower labor costs elsewhere.
Closure #3: Prairie Farms Dairy Closes Gallatin Facility
Earlier this year, Prairie Farms Dairy, one of the nation’s largest dairy cooperatives, closed its milk processing plant in Gallatin, leaving 120 employees jobless with little warning.
The company has been quietly consolidating operations across the Midwest and South as the dairy industry struggles with declining milk sales, rising transportation costs, and tight margins.
Three Companies, One Message
Despite operating in different markets —
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Perdue: Poultry processing
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Monogram: Meat snacks
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Prairie Farms: Dairy
— all three companies made the same strategic decision: cut costs, reduce operations, and exit Tennessee towns.
This signals a broader shift in the food manufacturing landscape and highlights growing pressure on smaller facilities across the state.
The Fallout Reaches the Farms
Factory closures don’t just affect workers — farmers are also hit hard.
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Crops go unharvested
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Livestock ready for processing has nowhere to go
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Long-standing partnerships vanish overnight
Farmers lose income, stability, and predictability, and unlike corporations, they can’t relocate. They’re rooted in the land and left dealing with the consequences.
Tennessee Job Losses Keep Climbing
Beyond food processing, other industries across Tennessee have seen mass layoffs in 2025:
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Bahama Breeze (Memphis) – 97 jobs lost
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Adient (Henderson & Maury Counties) – 500+ jobs lost
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Bridgestone (La Vergne) – 800+ jobs lost
That’s thousands of jobs gone — and the year isn’t even over yet.
A Nationwide Trend
Tennessee isn’t alone. Across the U.S., food factories and manufacturing plants are shutting down:
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Arizona, Illinois, and California have faced large-scale layoffs
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Even Coca-Cola has shuttered plants in California and Massachusetts
This is part of a national shift where corporations are consolidating, automating, and moving jobs elsewhere.
Impact on Consumers
Shoppers may also feel the squeeze. With fewer local facilities:
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Tennessee will rely more on out-of-state goods
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Transportation costs could drive higher prices
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The risk of shortages increases
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The state’s ability to supply itself weakens
If more closures follow, Tennessee families may face rising costs and limited access to local products.
Why It’s Happening
While each company had its own reasons, the closures stem from shared challenges:
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Rising labor costs
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Consumer cutbacks on everyday goods
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Increased automation replacing workers
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Inflation and high interest rates squeezing margins
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Corporate consolidation to reduce expenses
It’s a perfect storm for Tennessee’s food production sector.
What’s Next for Tennessee
Despite the losses, Tennessee still hosts major food giants like Tyson and Kellogg’s. However, closures like these chip away at the foundation of the state’s manufacturing economy — and once a facility closes, it rarely returns.
For workers, farmers, and local communities, the outlook is uncertain.
Summary
Between Perdue Farms, Monogram Foods, and Prairie Farms Dairy, Tennessee has lost more than 500 food manufacturing jobs in 2025 — with broader layoffs across multiple industries adding to the strain.
The state faces an economic crossroads, and the ripple effects are being felt on farms, in factories, and at grocery store shelves.
