Two large packing facilities set to open

New meat processing facilities are being developed or have recently opened with the aim of increasing processing capacity and boosting local economies. 

In Wright City, Mo., American’s Heartland Packing LLC constructed a 775,000 square-feet beef processing facility which is expected to be fully operational later this month, while Sustainable Beef, constructed near North Platte, Neb., held a ribbon cutting ceremony on March 24, confirming the completion of its $400 million plant which took nearly six years to construct.

In an interview with “KNOP” during the event, Sen. Pete Ricketts (R-NE) states, “You see, it’s our ranchers who are coming together to to create this facility to be able to get better prices for their cattle.”

“Founders like local Rancher Rusty Kemp worked hard to find the right people to invest in this place so we could create this great institution in Nebraska which is going to be so much for our state and for the community of North Platte,” he adds.

According to a Jan. 29 Independent Processor article, Missouri Department of Agriculture Director Chris Chinn states, “America’s Heartland Packing is a game changer for Missouri agriculture. The impact of this plant not only reaches producers, but also feed stores, farm supply stores and veterinary clinics in towns across the area as producers retain cattle for processing.”

He adds, “We welcome American Foods Group (AFG) and thank them for bringing this family-owned business to Missouri.”

Missouri plant

America’s Heartland Packing is a fresh meats division of AFG, supplying quality beef for food service, retail and international markets in Warren County, Missouri which broke ground in 2022. The $800 million mixed-cattle facility is slated to begin processing operations in April.

A key component of this project is the new wastewater treatment facility in Wright City, Mo. The $140 million project, funded and built by AFG in collaboration with Missouri Public Water Supply District Two, replaced the current lagoon system with a modern facility which expands capacity from 500,000 to 3.5 million gallons per day. 

This upgrade supports the new beef processing facility and benefits the wider District Two community, paving the way for sustainable growth. 

“From the state to the county, cattlemen to local community organizations, the support we’ve received has been remarkable,” said Steve Van Lannen, president and chief operations officer of AFG. “As a community-focused company, we are grateful to call Warren County, Missouri home. We remain dedicated to a seamless start to operations and eagerly anticipate coming online. While tours are currently paused to prioritize our startup efforts, we plan to host an open house for our partners and supporters this fall.”

AFG is enhancing efficiency by bringing beef processing closer to cattle production, lower costs and reduce energy consumption, benefiting both producers and consumers in Missouri. 

Once fully operational, the facility is expected to process more than 2,400 cattle each day, which will increase the U.S. beef harvest capacity and support the company’s growth strategy.

Jennifer Dibbern, AFG executive vice president of marketing and corporate communications states in an April 16 Northern Ag Network article, “It is a mixed-cattle plant and will pull cattle from the entire region. The plant will employ 1,300 people when it is scaled up to full production.”

Nebraska plant

Sustainable Beef, which plans to be fully operational by the summer of 2025, broke ground for its 560,000 square-feet facility in October 2022, with a processing capacity of approximately 1,500 head per day and 850 employees.

The rancher-led meat processing plant, backed by $20 million from Nebraska’s American Rescue Plan and in partnership with Walmart, ensures a steady demand for Nebraska’s high-quality beef.

According to “KNOP,” once the North Platte, Neb. facility starts operating, Walmart will assist in delivering beef from the facility to consumers across the country, and as part of the equity investment, the retailer will have a seat on Sustainable Beef’s Board of Directors.

“We are thrilled to be here today to work with Sustainable Beef, help create more capacity for the beef industry and help ensure more long-term sustainable growth for cattle ranchers, family farms and Walmart,” said Tyler Lehr, senior vice president at Walmart, during the ribbon cutting ceremony.

The facility will operate as a single-shift, family-friendly packinghouse with flexible hours to support working parents, enabling parents to drop off and pick up their children from school, with assistance from the after-school program provided by North Platte, Neb. schools.

Impact

According to DTN Livestock Market Analyst ShayLe Stewart in an April 16 Northern Ag Network article, the onset of having two new packing plants open in 2025 is significant for the cattle and beef industry. 

“Producers and feedlot managers remember the days in which shackle space was an issue and how it gravely limited fed cattle and feeder cattle prices,” she states. “From a grassroots perspective, more competition in the marketplace is always welcomed, and it will likely help drive stronger feeder cattle and fed cattle prices as new buyers will need to source cattle for those plants.”

These plants are experiencing success during a challenging time, with business concerns regarding the longevity and sustainability of these facilities.

“Given the U.S. beef cow herd sits at a record low, will those plants be able to find enough cattle to run their operation profitably? And the second part that’s vital to a packing plant’s success is being able to competitively market the meat they cut to a retail outlet,” Stewart adds.

Stewart mentions Sustainable Beef’s contract with Walmart would offer them protection against certain vulnerabilities.

In the past, new packing plants have gone out of business because larger, more established plants dominate the retail industry. This dominance makes it difficult for new plants to succeed, as they struggle to market their end products.

Melissa Anderson is the editor of the Wyoming Livestock Roundup. Send comments on this article to roundup@wylr.net.