Cattle producers are taking a giant step in leveraging their hand in the packing industry by building Producer Owned Beef, a state-of-the-art beef processing facility in Amarillo, Texas. The facility will be owned by cattle producers and operated by beef processing industry veterans. The project received a big boost when Texas Governor Greg Abbott announced on Wednesday that the state’s Texas Enterprise Fund is awarding Producer Owned Beef a grant of $12.232 Million.
The Governor’s Enterprise Fund $12.232 million announcement complements the Amarillo City Council’s unanimous decision to authorize Amarillo Economic Development Corporation (AEDC) incentives for Producer Owned Beef, LLC to build its new headquarters in Amarillo. Along with infrastructure improvements, the AEDC and City of Amarillo approved incentives of up to $11.1 million to establish the state-of-the-art facility –– a $670 million capital investment. The facility, designed to process 3,000-plus head of cattle per day, aims to employ nearly 1,600 people from the High Plains region.
Casey Cameron, CEO of Producer Owned Beef and a lifelong cattle producer, echoed the importance of the support from both entities. “The importance of Texas Enterprise Fund along with Amarillo EDC backing for this project cannot be overstated. Public-Private Partnerships are proven to attract additional investors and create a virtuous cycle of commerce, employment and tax revenue for our communities and state. Our commitment is to build and operate a beef processing facility that stands out from the rest of the industry in animal well-being, environmental protections, team member safety and ergonomics, and the highest quality beef products.”
Producer Owned Beef’s business model includes producers receiving wholesale beef prices for the cattle they supply and a share of the profits from the plant.
“Many of our ranchers and feeders are third-, fourth- or even fifth-generation producers who have invested their lives in feeding Americans,” said Monte Cluck, a Producer Owned Beef Board Member. “With this model, where producers are also owners, we’re creating economic sustainability for small and medium-sized producers by ensuring they receive a greater share of the financial upside for the hard work they do.”
The plant is expected to break ground in the first quarter of 2023, with the goal of being fully operable by fall of 2025.
For more information, including the executive team and goals of the project, visit www.producerownedbeef.com.