Smithfield to Build New Plant

Smithfield Beef Group, a relative newcomer to the beef packing industry, and ContiGroup companies on Oct. 18 said they would form a 50/50 venture to build a major new beef packing plant in the Oklahoma Panhandle.  Smithfield is the country’s largest hog processor and Smithfield Beef Group is the fifth largest beef processor, according to the 2006 Directions issue of National Cattlemen.  The company has a daily slaughter capacity of 7,750 and the new plant is expected to add 5,000 head per day to that.

The plant, which will be located in Texas County, is close to established feedyards, including Five Rivers Feedyards.  While Five Rivers is a stand-alone company, it was formed in May 2005 through a joint venture by Smithfield Foods Inc. and ContiGroup Companies Inc.  Officially known as Five Rivers Ranch Cattle Feeding LLC, it is the largest cattle feeding company in the country, with a capacity of 811,000 head.  It has yards in Kansas, Texas, Idaho, Oklahoma and Colorado.  The Colorado yards are the old Monfort yards, which are just down the road from Swift & Company, the third largest beef packer.

Construction of the 650,000 square-foot facility is expected to begin in January and it will be operational in 2008.  It is expected to employ 2,500 to 3,000 people.  Cost is estimated at $200 million.