Proposed Iowa Beef Plant Seeks Investors
Developers of a proposed new beef packing plant in western Iowa are seeking investors for the $450-million project. The Creston News Advertiser reported developers met with prospective investors in Creston last week, with additional meetings scheduled in Mount Ayr and Greenfield, Iowa.
Cattlemen’s Heritage Beef Company announced plans last June to construct a 1,500-head per day facility in Mills County, Iowa, south of the Omaha/Council Bluffs area. The plant would employ up to 750 workers and have an estimated annual economic impact of $1.1 billion. Construction is scheduled to begin this spring.
"This is an economic development bonanza," Bill Menner of the Bill Menner Group, an Iowa-based consulting firm told those attending the meeting in Creston. "Bonanza is not a big enough word."
Menner said there is $75 million to $90 million available in grants to fund construction. Cattlemen's Heritage is offering to sell 100,000 units to investors. The minimum purchase is 67 units for a total of $100,500. Each unit is $1,500.
Menner said the plant will not be like other beef-processing plants in the state that have much greater daily volume and multiple shifts. He called those plants and their influence on the cattle industry unsustainable. Menner said Secretary of Agriculture and former Iowa Governor Tom Vilsack said there is lack of competition in the beef industry.
"This caught the attention of the federal government," Menner said. "This is a big deal. The demand for beef is growing. From the Missouri River to I-35 is rich with family-oriented producers and top quality beef."
The plant will be on 132 acres of land with room for future expansion. It is expected to be operational in December 2023. The location was selected because of proximity to an interstate, railroad and experienced labor pool between Omaha, Nebraska, and Council Bluffs.
Menner said the plant's four ideals are a sustainable operation, medium size, innovation and transparency and producer owned.
