KANSAS CITY, MO. – To accommodate growing demand for fed cattle supplies in Iowa, National Beef Packing Co. LLC announced on March 17, plans to increase capacity at its Iowa Premium beef processing plant in Tama, Iowa. With an investment of more than $100 million, daily capacity at the plant is expected to double to 2,500 head, requiring the addition of a second shift. National Beef acquired the facility in 2019 for approximately $150 million, at a time when revenue was about $650 million per year.
National Beef acquired the Iowa Premium plant in 2019 for $150 million. At the time of the acquisition, Iowa Premium employed more than 800 people and processed approximately 1,100 head of corn-fed, Black Angus cattle and generated annual revenue of about $650 million.
The project’s completion dated is slated for late 2022 and is expected to create hundreds of jobs in the Tama area. The investment plans are supported by the communities around Tama as well as the state of Iowa, said Time Klein, president and chief executive officer of National Beef.
“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,” he said.
Matt Deppe, CEO of the Iowa Cattlemen’s Association, said the expansion at the plant is a positive sign for the company and the beef producers that supply the facility.
“As fed cattle demand continues to grow, we must look for ways to transform packing capacity within the state,” Deppe said. “We welcome opportunities to build more shackle space and encourage more competition for Iowa’s fed cattle inventory. National Beef’s expansion plans, in conjunction with the state of Iowa’s initiatives to further develop local processing, will provide additional opportunities for cattle producers and our local communities.”