US beef packer sees more financial woes

Northern Beef Packers, whose one facility in Aberdeen, South Dakota, is still under construction, is overdue to pay its property taxes, according to a report.

The company owes more than US$62,000, the report indicated. Such a delay in making property payments is not unusual or illegal, but could be another indication of financial struggling by Northern Beef.

In addition to the unpaid property taxes, no fewer than 16 liens have been filed against the company for monies owed totalling US$13.35 million, related to the plant's construction.

The cost of building the plant is moving past the original estimate of US$40 million.

The Aberdeen plant initially was to open in May 2008. That was moved back to May 2009, then to August or September of this year. The plant is designed to have up to 550 employees processing 1,500 cattle a day.

Northern Beef principal Dennis Hellwig hopes to pay the past-due taxes by the end of August or at least by the end of the year.