Foster Farms
| Company type | Private |
|---|---|
| Industry | Poultry |
| Founded | 1939 |
| Founder | Max and Verda Foster |
| Headquarters | Livingston, California , United States |
Area served | Primarily West Coast, limited East Coast |
| Products | Fresh chicken and turkey products |
| Owner | Atlas Holdings (since 2022) |
Number of employees | 10,500 (approximate in 2007) |
| Website | www |
Foster Farms is a privately held American poultry enterprise established in 1939. Initially managed by the Foster family, the company was purchased in 2022 by the private equity firm Atlas Holdings. Based in Livingston, California, Foster Farms primarily serves the West Coast market while maintaining a limited footprint on the East Coast. Its product lineup includes a variety of fresh chicken and turkey items sourced locally.
Early Years
The company was founded in 1939 by Max and Verda Foster, who invested $1,000 to start a farm in Modesto, California, originally focusing on turkey farming. In 1942, Max left his journalism profession to dedicate himself fully to expanding the operation into cattle and poultry. Growth accelerated during the 1950s through acquisitions such as an additional farm and a feed mill, which strengthened supply chain management. In 1959, Foster Farms took over the Sunland Poultry processing facility in Livingston and relocated its headquarters there in 1960 to consolidate slaughtering, processing, and packaging functions.
1970s
Paul Foster assumed the role of president in 1969, leading the company to open a significant distribution center in El Monte, California in 1973 to better serve Southern California customers. Following Paul’s untimely death in 1977, leadership passed to his brother Thomas, who sustained the company’s strategic development and operational growth.
1980s
The acquisition of The Grange Company and Valchris Poultry in 1982 marked Foster Farms' return to the turkey market and broadened its deli product offerings. Throughout the decade, the company diversified into items such as bologna, poultry franks, and luncheon meats. Between 1975 and 1988, sales tripled; by 1987 production reached around 140 million chickens annually, establishing Foster Farms as California’s top chicken producer. The firm maintained an integrated approach by managing egg incubation and chick raising internally.
Marketing efforts intensified during this period, culminating in a Clio Award win in 1988. Expansion continued with the purchase of Oregon’s largest poultry producer, Fircrest Farms, in 1987. In 1988, production capabilities were enhanced through development of a one-million-square-foot fryer ranch in Merced, upgrades to the Ceres feed mill, and inauguration of an 85,000-square-foot distribution and sales center in Livingston. The following year saw conversion of a Fresno turkey processing plant into a chicken facility equipped to handle an additional 80 million birds annually.
Consumer preference shifted toward poultry over red meat due to health concerns about saturated fats, bolstering Foster Farms’ sales. However, a 1987 60 Minutes segment on salmonella briefly impacted sales; the company responded proactively by inviting media representatives to tour its processing operations to rebuild trust.
1990s
In 1992, founders George and Tom Foster stepped down from their roles as president and CEO but remained on the board while appointing Robert Fox as CEO. This transition coincided with renewed sales momentum and further strategic acquisitions. In 1994, Foster Farms acquired Lynden Farms for $8.2 million. By 1996, annual revenues approached $900 million, making it the largest poultry producer on the West Coast and eighth largest nationwide.
Expansion continued with the purchase of Pederson's Fryer Farms—Washington's leading poultry producer—in 1997 for $7 million. The following year saw the opening of a $45 million processing plant in South Kelso, Washington that generated 500 new jobs. Additional acquisitions included Butterball Turkey Company's processing plant and feed mill in Turlock, California; a hatchery located in Fresno; and Alabama-based Griffith Foods, known for corn dog production. By 1999, Foster Farms was producing over 750 million pounds of poultry annually and ranked as the second-largest corn dog manufacturer across the United States. After Tom Foster’s passing that year, George Foster continued active involvement with company operations.
2000s
In October 2001, Foster Farms broadened its footprint by acquiring the chicken operations of Zacky Farms in Southern California. This purchase encompassed the Fresno processing facility, hatchery, feed mill, live production ranches, and a distribution center in Los Angeles. The transaction brought an additional 1,500 employees into the company and substantially increased production capacity. Two years later, in 2003, Foster Farms introduced the Fresh & Easy product line featuring pre-washed, individually packaged boneless, skinless chicken breasts and thighs. To accommodate rising demand, a new distribution center was constructed in 2004.
"Say No to Plumping"
In 2007, Foster Farms launched the "Say No to Plumping" initiative aimed at opposing the common industry practice of injecting poultry with saltwater and additives to artificially enhance weight—a process known as plumping—while still labeling the product as "all natural." The company called on the U.S. Department of Agriculture to impose stricter labeling regulations and rolled out a video marketing campaign to educate consumers. This effort earned Foster Farms a Gold Effie Award in 2010, strengthening its market position by highlighting commitment to transparency and product integrity.
2010s
Foster Farms achieved a milestone in 2013 by becoming the first major U.S. broiler chicken producer to receive humane certification from the American Humane Association. This recognition underscored its leadership in animal welfare standards across the industry. The certification was also extended to its Poultry Education and Research Facility at California State University, Fresno, reflecting ongoing dedication to ethical treatment and sustainable practices.
Controversies
In late 1997, Foster Farms faced a two-week strike involving several hundred workers before a new labor agreement was reached. The following year, the company admitted guilt for violating the federal Clean Water Act after discharging 11 million gallons of chicken manure-contaminated water into the San Luis National Wildlife Refuge. Between 2003 and 2006, employees at the Livingston plant changed their union representation, which led to a brief strike in October 2005 amid disputes over union recognition.
On June 25, 2018, a transport truck carrying approximately 5,000 chickens crashed while en route to Foster Farms’ Kelso, Washington processing facility, resulting in numerous bird fatalities. Animal rights activists attempted to rescue some of the chickens but were denied access by Foster Farms citing health risks; one activist was arrested during the incident. A vigil was later held to commemorate the affected animals.
Salmonella outbreak
On October 7, 2013, the U.S. Department of Agriculture issued a public health advisory concerning raw chicken products from three Foster Farms facilities in California after about 278 individuals contracted antibiotic-resistant Salmonella Heidelberg across eighteen states, primarily in California, Oregon, and Washington. Although no recall was mandated by USDA, the plants continued operations once Foster Farms agreed to implement corrective actions.
By mid-2014, Foster Farms announced it had lowered Salmonella contamination rates in its raw cut-up chicken to approximately 2%, significantly undercutting the national industry average of 25%, demonstrating its commitment to rigorous food safety measures.
A May 2015 PBS Frontline investigation revealed gaps in food safety regulation. In response, Foster Farms contested allegations linking their products to a Salmonella outbreak in 2004 but chose not to engage further with Frontline on this matter.
COVID-19 pandemic
By April 2020, Foster Farms reported COVID-19 infections at several of its facilities, including four cases at the Kelso, Washington plant and one confirmed infection at a Fresno, California location with approximately 3,000 employees. In August, the Livingston, California site experienced a major outbreak, with over 300 staff members infected and eight fatalities among its workforce of 3,700. Due to the outbreak's severity, local officials in Merced County mandated the closure of the Livingston plant. California Attorney General Xavier Becerra stressed the urgency for prompt measures, underscoring Foster Farms' obligation to adhere to public health directives. The California Department of Public Health also verified that multiple other Foster Farms plants across various counties were impacted by COVID-19.
Finances and industry statistics
In 2005, Foster Farms was honored with California's premier environmental accolade, the Governor's Environmental and Economic Leadership Award (GEELA), in recognition of its pioneering efforts in resource conservation through a collaborative initiative with the East Bay Municipal Utility District (EBMUD). That same year, the company received the POWER Award for its proactive approach to state water challenges and serving as an environmental benchmark.
As a leading poultry producer on the West Coast, Foster Farms reported revenues close to $2 billion in 2007, marking an 11.1% growth compared to the previous year. At that time, the company employed roughly 10,500 individuals, reflecting both increased revenue and operational expansion.
See also
- Crystal Creamery
- League of Independent Workers of the San Joaquin Valley
- Impact of the 2019–20 coronavirus pandemic on the meat industry in the United States
External links
- Poultry companies
- Brand name poultry meats
- Poultry farming in the United States
- Meat companies of the United States
- Companies based in Merced County, California
- Food and drink companies based in California
- Agriculture companies established in 1939
- Food and drink companies established in 1939
- American companies established in 1939
- 1939 establishments in California
- Agriculture in California
- Agriculture companies of the United States
- Privately held companies based in California
- Family-owned companies of the United States
- Companies of the United States by year of establishment