United States-Giant pork processor in trouble.

UNITED STATES-PORK CO-OPERATIVE GETS INTO TROUBLE.

A producer-owned pork processing cooperative in Illinois has announced it will file Chapter 7 bankruptcy. Assets will be liquidated, including the cooperative’s 30-million dollar processing facility at Rantoul, Ill., in order to pay as many debts as possible according to a memo from the Meadowbrook board of directors.

The cooperative was formed nine years ago with over 200 producer members. More than half the members had left the organization complaining of losses due to selling hogs to the cooperative significantly below market value with no dividends.

The cooperative’s bond recently was raised to almost $6 million – the amount the cooperative owed producer owners for live hog deliveries. The previous bond was $740,000. Meadowbrook management was unable to secure the $6 million loan it said would be necessary in order to keep the cooperative alive.

As unsecured creditors, it appears producer-owners will recoup very little of what they are owed.