Smithfield Foods, Inc. Has decided the cost of operation in California is too high, so it is shutting down its hog-processing facility there.

Bought out by China-based food titan WH Group in 2013, the company stated “all harvest and processing operations” at the Vernon California facility will cease early next year. According to a company spokesperson, the cost of utilities in the Golden State makes it, “3.5 times higher per head to produce pork.”

Smithfield spokesman Jim Monroe went on to say, “It’s increasingly challenging to operate efficiently there. We’re striving to keep costs down and keep food affordable.”

Smithfield also said it is looking at shutting down its California and Arizona farms, and will reduce the size of its Utah farming operation.

In a written release, the company said, “Smithfield is taking these steps due to the escalating cost of doing business in California.”

The soon to be closed Vernon plant employed 1,800 workers. Smithfield said it will be, “providing transition assistance to all impacted employees.” The company said it is offering workers options to transition to new facilities, “as well as retention incentives to ensure business continuity until early next year.”

Smithfield noted the closure required coming to an agreement with a number of labor unions.

Chief Operating Officer Brady Stewart added, “We are grateful to our team members in the Western region for their dedication and invaluable contributions to our mission. We are committed to providing financial and other transition assistance to employees impacted by this difficult decision.”