Earlier this week, National Beef Packing Company LLC announced plans to spend more than $100 million to boost processing capacity at its Iowa Premium facility in Tama, Iowa to around 2,500 head per day. When National Beef, the U.S.’s fourth largest beef processor, acquired the facility in 2019, it processed around 1,100 head of fed cattle daily. The Tama facility plans to add a second production line by the end of 2022.
Yesterday on AgriTalk, Drovers Editorial Director Greg Henderson said, “The reason this is such a big deal is that 1,400 head nationwide would not be a big increase, but for that region, which would include the Omaha, Iowa, Illinois region, that would be a 13% increase in packer capacity.” He adds, “Increased net capacity could only help in improving the price” for fed cattle, especially in the Midwest.
“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," National Beef President and CEO Tim Klein said in a statement.