February 9, 2010

Dakota Beef enters co-packing joint venture

US leading producer of premium certified organic beef, Dakota Beef, and North Dakota Natural Beef (NDNB), a growing supplier of natural Angus beef, have entered into a co-packing partnership that will merge each company's harvest and fabrication operations.

Effective February 8, Dakota Beef will begin to process its organic product in NDNB's facilities.

Dakota Beef, which operates its own 150,000-acre organic Angus ranch in the high country of Eastern Oregon, is the largest vertically-integrated organic beef processor in the US. Their products, which are certified 100% organic by the USDA, sell under the "Dakota Beef" brand to major retailers and foodservice distributors nationwide.

As a result of this new partnership, Dakota Beef is leasing its Howard, South Dakota plant to another beef operator.

Dakota Beef chief executive officer Daniel Feinberg said the company has enjoyed the loyalty of the Howard community and did not arrive at this decision easily.

"Over the last several months, we have studied all aspects of a facility renovation and have determined that it would not be cost effective for us," Feinberg said.

He added, "We need to meet increased demand for our products, and NDNB offers excess capacity in their modern, state-of-the-art facilities. We believe the new partnership will enhance Dakota Beef's ability to supply gourmet organic beef of the highest quality."