USA – Koch Foods is expanding its operations in Morton, Mississippi, with a US$145.5M investment aimed at enhancing production capacity at its chicken processing facility.
The Mississippi Development Authority (MDA) announced that the project includes renovations and upgrades to the existing facility and the addition of processing and distribution infrastructure.
The expansion is expected to create 128 jobs over the next five years, the MDA confirmed.
Koch Foods, established in 1973, ranks as the sixth-largest poultry processor in the United States and operates facilities in Alabama, Georgia, Ohio, Tennessee, and Illinois.
The company is unaffiliated with Koch Industries, despite the similar name.
Mississippi Governor Tate Reeves welcomed the investment, citing the state’s workforce and location as key factors in attracting such projects.
“Mississippi continues to offer a business-friendly environment that supports growth and connects businesses to domestic and international markets,” Reeves said in a statement.
To support the expansion, Koch Foods will benefit from tax credits under Mississippi’s incentive program for economic development projects, according to the MDA.
The move comes as poultry companies across the U.S. reassess their operations amid challenging economic conditions in the agricultural sector.
While some companies are cutting back, Koch Foods has been expanding.
Last year, the company allocated US$220 million to increase production at its Fairfield, Ohio poultry plant, and announced plans to build a cold storage facility in the same area.
In 2023, Koch Foods produced 62.1 million pounds of ready-to-cook chicken weekly, maintaining the same output as in 2022.
The company reported sales of $5.1 billion in 2023, marking a decline from US$5.3 billion the previous year.
The breakdown of Koch Foods’ sales was distributed across several segments: 40% came from foodservice, 20% from retail, 15% from institutional clients, 10% from industrial sales, and 15% from exports.
Other poultry companies are also making strategic adjustments.
Tyson Foods, a competitor, opened a 325,000-square-foot chicken nugget processing facility in Danville, Virginia, in 2023, featuring automated systems for packing and palletizing.
However, the same year, Tyson shut down six chicken plants and laid off hundreds of employees to manage costs in a tough economic climate.
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