The troubled US kosher food producer Agriprocessors based in Postville, Iowa - the largest kosher meatpacker in the country - is facing foreclosure. This would seriously affect kosher meat supply in the US. A St. Louis bank has initiated insolvency proceedings after Agriprocessors and its owners defaulted on a US$ 35 million loan. Short-term disruptions in the supply of kosher meat, particularly kosher and glatt kosher beef, could now be widely expected, according to rabbi Menachem Genack, the head of kosher supervision for the Orthodox Union, who told JTA that he had already heard from communities that have no supply. "There is going to be a sharp decline in availability immediately," said Genack, adding that the company was trying to survive but that the situation was grim.
Last week, Agriprocessors' former top manager was arrested a day after the company was fined US$10 million for alleged labor infractions. Sholom Rubashkin was arrested by immigration officials on charges related to the hiring of illegal workers. Documents filed in court allege that Rubashkin conspired to harbor illegal immigrants at the Agriprocessors meatpacking plant in Postville. The documents further charge that Rubashkin aided and abetted in the use of fake identification documents and identity theft.
In addition, the staffing company responsible for approximately half of the labor force at the Postville plant has suspended its contract. Beef production has been shut down for several days, and reports suggest that the company lacks the resources to slaughter and process the chickens in its possession, though some chicken slaughtering reportedly is taking place.