Chicago: A fifth-generation rancher and consultant plans to build the nation’s largest beef plant in South Dakota, with the capacity to slaughter 8,000 cattle a day.
This $1.1 Billion Project Could Help Solve These Problems Biden Administration worries about rising food prices and a lack of competition in the meat sector, although this will not last until at least 2026.
The project is led by kingsbury and Associates and Serious Realty, both run by Megan Kingsbury of a South Dakota ranching family. He told Reuters that he expects construction of the plant to begin in 2023 and will take three years.
Biden administration and Congress The beef industry has come under scrutiny after temporarily closing slaughterhouses in early 2020 following the COVID-19 outbreak, leaving cattle ranchers with nowhere to go and consumers facing meat shortages .
According to industry data, the four large companies, Cargill, Tyson Foods Inc., JBS SA and National Beef Packing Company, slaughter about 85% of all US-fed cattle. The administration has blamed the lack of competition in the sector for the rising food prices. The meat companies deny the allegations.
Kingsbury’s project will slaughter about 1,000 more cattle per day than the current top processor, Tyson’s plant in southeastern South Dakota.
“The industry will need this kind of investment for years to come,” said Darrell Peel, an agricultural economist at Oklahoma State University.
But some industry analysts said the plant could struggle to find labor, develop supply chain relationships from scratch, and be profitable amid tight cattle supplies.
Historical droughts and low profits have caused ranchers to reduce the size of the American herd, leaving less cattle for processors to harvest.
Kingsbury said he was confident the new plant would address the issues of tight supplies of cattle and labour. The plant aims to employ 2,500 people and uses advanced technology seen in Europe Asia To process beef with less labor, she said.
“We have to break the old mindset of the packing plant being a sweatshop,” Kingsbury said.
This $1.1 Billion Project Could Help Solve These Problems Biden Administration worries about rising food prices and a lack of competition in the meat sector, although this will not last until at least 2026.
The project is led by kingsbury and Associates and Serious Realty, both run by Megan Kingsbury of a South Dakota ranching family. He told Reuters that he expects construction of the plant to begin in 2023 and will take three years.
Biden administration and Congress The beef industry has come under scrutiny after temporarily closing slaughterhouses in early 2020 following the COVID-19 outbreak, leaving cattle ranchers with nowhere to go and consumers facing meat shortages .
According to industry data, the four large companies, Cargill, Tyson Foods Inc., JBS SA and National Beef Packing Company, slaughter about 85% of all US-fed cattle. The administration has blamed the lack of competition in the sector for the rising food prices. The meat companies deny the allegations.
Kingsbury’s project will slaughter about 1,000 more cattle per day than the current top processor, Tyson’s plant in southeastern South Dakota.
“The industry will need this kind of investment for years to come,” said Darrell Peel, an agricultural economist at Oklahoma State University.
But some industry analysts said the plant could struggle to find labor, develop supply chain relationships from scratch, and be profitable amid tight cattle supplies.
Historical droughts and low profits have caused ranchers to reduce the size of the American herd, leaving less cattle for processors to harvest.
Kingsbury said he was confident the new plant would address the issues of tight supplies of cattle and labour. The plant aims to employ 2,500 people and uses advanced technology seen in Europe Asia To process beef with less labor, she said.
“We have to break the old mindset of the packing plant being a sweatshop,” Kingsbury said.