Stampede Meat has filed suit to block an order by the state of New Mexico to close a production facility where more than 100 workers have tested positive for COVID-19. The company supplies to Walmart and Costco and is arguing it should stay open under the executive order issued by President Donald Trump in April that ordered meat plants to stay open to protect the U.S. food supply.
New Mexico last week ordered Stampede Meat to shut for 14 days after identifying six COVID-19 cases at the plant during a five-day period in late October. But the closure is unconstitutional and could force the company to destroy millions of pounds of meat destined for grocers and food service customers like Denny's and Applebee's, the company said.
“Allowing the Department of Health to ignore the President's Executive Order and close Stampede Meat and other meat and poultry processing companies will lead to similar food shortages and rationing," the lawsuit said. According to Reuters, a spokeswoman for New Mexico's health department said they were unaware that Stampede had halted operations and that at least 11 workers tested positive over two weeks when the state ordered the shutdown and more than 100 employees have tested positive during the pandemic.
Stampede also reached out to USDA and a USDA spokesman said the agency offered to help New Mexico manage the pandemic and ensure food supplies. It is not clear what the court will rule, but this will be closely followed in the industry.