US's Agri Star aims to lead kosher beef market

Agri Star Inc., the meat and poultry processing company that bought the former Agriprocessors Inc. plant in Postville, Iowa, is taking a run at being the leading supplier to kosher beef market, according to CEO Hershey Friedman.

Friedman bought the troubled Agriprocessors Inc. plant last August and invested US$7.5 million to modernise and upgrade the facility. The plant now has grown to 560 employees and is producing a full line of chicken, turkey and beef products for the retail, foodservice and deli markets.

Currently, the facility slaughters between 85 and 90 head of cattle per day. Production is expected to increase to 150 head per day within the next month and grow to 500 head a day in a year's time, according to Friedman.

Bruce Berven, executive vice president of the Iowa Cattlemen's Association said prices paid for Iowa cattle have rebounded since Agri Star resumed beef production. He was optimistic the company's buying power would provide a significant, positive economic boost for Iowa's 10,000 beef producers.

Friedman indicated his goal was to regain Agriprocessors' former leadership role in the glatt kosher market.

Last November, the company received about US$600,000 in state grants for upgrades to the plant, and the company aims to increase production to 1,000 cattle per day and grow the workforce to 1,000 employees.

Agriprocessors Inc was the US's largest kosher slaughterhouse prior to a 2008 immigration raid in which nearly 400 employees were arrested or detained, resulting in fraud and other criminal charges.

Agri Star has since overhauled its human resource department, using a government-based verification system to insure that only legal workers are hired.