August 30, 2023

Building of US$670 million beef plant in Texas Panhandle, US, to start soon

A US$670 million beef production plant is set to be established in the Texas Panhandle, the United States, and is expected to be the country's only facility of its kind owned by cattle producers.

Amarillo, Texas-based Producer Owned Beef expects to begin the project spanning 1,108 acres in Amarillo at the end of September, according to a work permit filed with Texas.

A delay in the start of construction pushed the project's completion date to the end of 2026 from its prior completion expected in 2025.

The state permit showed the work expected to start next month includes a 750,000-square-foot beef processing plant designed by Steele Architecture that is estimated to cost at least US$338.5 million.

Upon the facility's completion, it would employ nearly 1,600 workers and slaughter at least 3,000 head of cattle a day in Amarillo, a move likely to bring more competition to US beef production.

The new beef production plant could have a big economic impact in the Panhandle region, prompting state and local government entities to step up to offer the company millions of dollars in incentives for the project.

Texas, which ranks number one in US cattle feeding but number three in US cattle production, is well-suited for the new production site in the Panhandle, close to where the cattle are raised, said executives of Producer Owned Beef.

The new beef production facility is touted as helping to shore up the supply chain, protecting the US' food security and increasing competition in a move that will ultimately benefit independent cattle producers.

- CoStar