February 20, 2026

Smithfield to spend up to US$1.3 billion on meat products site in South Dakota, US, for next three years

Smithfield Foods said on February 16  it would spend up to $1.3 billion over the next three years on a new combined packaged meats and pork processing plant in Sioux Falls, South Dakota, the United States.

The highly automated facility is set to be "the most modern of its kind in the US," the pork giant said in a statement, and will help deliver "significant efficiency gains" to the company's fresh pork and high-value packaged meat operations.

The building will replace the pork giant's existing manufacturing facility in the city, which is more than 100 years old. The plant is expected to begin production at the end of 2028.

Although Smithfield is primarily a pork producer, it's slowly expanded its presence in beef as the company looks to offer more packaged meats like salami or roast beef. The company recently purchased Nathan's Famous all-beef hotdogs for US$450 million, further exposing itself to the volatile cattle market.

To reduce costs, Smithfield has looked to simplify its supply chain and find savings through manufacturing efficiencies. The company recently said it would close a dry sausage plant in Massachusetts, with plans to move production to other facilities.

Smithfield's current Sioux Falls plant employs 3,200 people and began operating in 1909 under processor John Morrell & Company, which was purchased by Smithfield in 1995. The $1.3 billion investment reflects its strategy to grow packaged meat, which has become one of the most profitable segments for the company.

"Smithfield's investment supports our long-term strategy of continuing to grow and optimise our value-added packaged meats and fresh pork operations to deliver innovation, convenience, and value to our customers," Shane Smith, president and chief executive officer of Smithfield Foods, said in a statement.

Other meatpackers have invested in automation to squeeze savings. Cargill announced a US$90 million investment last year in computer vision technology for its Fort Morgan, Colorado, plant that allows the manufacturer to process more meat per cow.

- Food Dive