Since 2010, Cypress Valley Meat Company has provided abattoir and livestock meat processing services to more than 900 independent farmers in Arkansas, a leading producer of poultry among US states.
The small chain employs about 150 workers, all of whom will now become owners and share in the company’s profits through an employee ownership trust, or EOT.
“Because Cypress Valley employees work in mostly rural communities with lower wages, the ability to now share in a bigger profit pool is game changing,” said Common Trust’s Zoe Schlag. Cypress Valley is the 17th EOT that Common Trust has designed to create ownership for hundreds of thousands of workers.
Common Trust in September facilitated the creation of an EOT for 135,000 caregivers of Consumer Direct Care Network, demonstrating that EOTs can be a fit for businesses of all sizes (see, “In-home caregivers get a stake as bigger companies discover employee ownership trusts”).
Owners’ legacy
Cypress Valley’s transition to employee ownership fulfills the intended legacy of the company’s late founder Andy Shaw. During COVID, as meat producers faced surging demand and many small processors shut down, Shaw introduced wellness bonuses to keep employees motivated.
“Through my hiring process, it was apparent that Andy Shaw was looking for a way for his business to be more meaningful than a paycheck for those doing the hard work everyday,” Cypress Valley’s Brandon Dunn told ImpactAlpha.
Shaw had “a philosophy of ‘I don’t want to just hire you, I want to retire with you,’” Dun added. “These early conversations put our executive team on the path of looking for ways to fulfill the vision.”
Cypress Valley is the first EOT in Arkansas, as well as the first EOT in the meat processing industry, says Common Trust.
