Deceber 5, 2003
Iowa Premium Pork Expands Pork Production Thru Acquisition of Beef Processing Plant
Iowa Premium Pork Company (IPPC) has purchased the former beef processing plant owned by PM Beef Holdings in Hartley, Iowa, in the United States. IPPC intends to use this plant to further process pork through its subsidiary, Majestic Food Group.
By this month, IPPC will mail a Disclosure Statement containing a description of this project to all of its members, and will make copies available to other pork producers who request it. Midwest pork producers will have an opportunity to invest in this project until April 1 2004. This investment will be offered only through the Disclosure Statement.
IPPC will hold seven informational meetings to describe this project and answer questions. Five of these meetings will be held throughout Iowa in early January:
- Jan. 5: Hartley (includes a plant tour starting at noon)
- Jan. 6: Cedar Falls
- Jan. 7: Washington
- Jan. 8: Indianola
- Jan. 9: Ft. Dodge
There will be two additional meetings at the Iowa Pork Congress on Wednesday and Thursday, January 28 - 29 next year. All meetings to begin at 1 p.m.
Majestic intends to buy and install additional equipment, plus hire and train employees from April through July. Production at the Hartley plant is scheduled to begin in August with about 200 employees.
Majestic plans to contract with existing packers to process its live hogs into carcasses, and ship the carcasses to the Hartley facility for further processing.
Majestic's target markets will be retail food store chains and food service companies.
Pork producers who invest in this project also will sign a marketing agreement requiring them to deliver one hog per year for each share purchased through 2008. Majestic will buy these hogs for a portion of the wholesale value of their meat.
IPPC has developed this project to provide Midwest pork producers with an opportunity to receive a share of the additional value of their hogs through further processing and sale of the meat. A second goal is to provide producers with a more consistent price for their hogs.