US – National Beef Packing Company has announced plans to double the capacity of its U.S. plant located in Tama, Iowa in response to growing demand for fed cattle supplies in the state.
The beef company said it will invest more than US$100 in the expansion project which is expected to raise the daily capacity at the plant to 2,500 head.
National Beef acquired the facility in 2019 for approximately US$150 million, at a time when revenue was about US$650 million per year.
At the time of the acquisition, Iowa Premium employed more than 800 people and processed approximately 1,100 head of corn-fed, Black Angus cattle.
The project’s completion dated is slated for late 2022 and is expected to create hundreds of jobs in the Tama area as an additional shift will be required to effectively manage the expanded plant.
“This project will increase our capacity to produce products that are in high demand by our customers worldwide and will provide an expanded market for the Iowa family farmers who supply us with premium Angus cattle,” said Time Klein, president and chief executive officer of National Beef.
Matt Deppe, CEO of the Iowa Cattlemen’s Association, said the expansion at the plant is a positive sign for the company and the beef producers that supply the facility.
“As fed cattle demand continues to grow, we must look for ways to transform packing capacity within the state,” Deppe said.
“National Beef’s expansion plans, in conjunction with the state of Iowa’s initiatives to further develop local processing, will provide additional opportunities for cattle producers and our local communities.”
National Beef is majority owned by Marfrig Global Foods, which upped its stake in the company to 51% in 2019 and is the latest meat company to announce expansion plans due to increased demand.
Earlier, Tyson Foods, the world’s second largest processor and marketer of chicken, beef, and pork, announced plans to expand its case-ready meats production capacity by converting an idle facility in Columbia, South Carolina.
The company says it will initially invest approximately US$42 million to transform the facility into a meat portioning and packaging operation.
Procurement of production equipment and further improvements will be made at the facility over the next three to five, reaching a total estimated investment of US$55 million.
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