WASHINGTON— An order by the Surface Transportation Board (STB) stated the Union Pacific Railroad Co., needed to continue to carry out specific service commitments to Foster Farms, a subsidiary of Atlas Holdings.
The decision came after the board of STB issued an emergency service order on June 17 for Union Pacific to give preference and priority to unit trains of corn from the Midwest to Foster Farms’ facilities in Traver and Turlock, Calif.
After the order, Union Pacific was required to file daily status reports with the STB board, hold weekly conferences with the board staff and inform the board and Foster Farms in writing of any need to deviate from the proposed schedule.
STB added that Union Pacific has restored its service to a level that enables Foster Farms to feed its livestock and maintain its obligations to customers in the short term.
The initial service period for the order will continue through July 17.
In early June private equity firm Atlas Holdings acquired Foster Farms. The company has 13 processing facilities in California, Washington, Louisiana, Oregon and Alabama and employs approximately 10,000.
Donnie Smith, the former chief executive officer of Tyson Foods, has been named chairman of the board and chief executive officer of Foster Farms.