By Scott Carlson-NP Post
NORTH PLATTE, Neb.-At a packed news conference at the Prairie Arts Center in North Platte on Thursday, a group of local cattle producers and investors confirmed the rumors that a meatpacking plant was being proposed for North Platte.
Sustainable Beef, LLC CEO David Briggs of Alliance announced that the group was proposing a 300,000 square foot plant, at a cost of around $200 million, on Newberry Road. Briggs said the plant will be located near the city's wastewater treatment plant about a mile north of Interstate 80 exit 179.
Sustainable Beef says North Platte's location in the middle of the Sandhills, where some of the nation's best cattle are raised, makes the location ideal for processing and transportation.
The group describes the plant as a "small regional plant" that will process around 400,000 cattle each year.
"It's in between the 5,000 head a day plants and the local butcher," said Briggs.
The idea for the plant was born when local rancher Rusty Kemp traveled to Japan and Vietnam with Governor Pete Ricketts in 2019. After conversing with Governor Ricketts and other cattlemen during the trip, Kemp had the idea of a plant centrally located in Nebraska.
Kemp noted that Nebraska beef is held in high regard around the world, and there was a need for more capacity to ensure cattle producers had a location to process their livestock.
With the COVID-19 pandemic forcing the closure of numerous meatpacking plants at the same time, this need became even more apparent, according to Sustainable Beef and Governor Pete Ricketts.
"Disruptions caused by fires, floods, and the current pandemic have reinforced the need for greater capacity to process Nebraska beef," said Ricketts. "In response, a coalition of Nebraskans have established Sustainable Beef, a small plant in North Platte to serve local ag producers."
Officials with the City of North Platte and Lincoln County have been in discussions with Sustainable Beef for some time, and seem to support the plant.
"From a strategic standpoint, the project focuses on enhancing the area's cattle industry, growing the area's workforce, and providing an opportunity to thrive in the global market," said North Platte City Administrator Matthew Kibbon. "These combined will undoubtedly contribute to the current and future success of Nort Platte.
President and CEO of North Platte Area Chamber and Development Corporation Gary Person echoed Kibbon's sentiments.
"When you look at the North Platte area economy and the profound positive financial impact this will have, through major investment and job creation, it will truly help diversify our economy and build upon our natural economic strengths," said Person.
The plant is expected to employ around 875 people with an average salary "on the floor" of around $50,000 annually. The plant will operate as a one-shift processing plant with a labor force that is expected to live within a 60-mile radius of North Platte.
Sustainable Beef has engaged renowned Creighton University economist Ernie Goss to complete an economic impact study that will show the financial benefit to the city of North Platte and Lincoln County.
"We have seen tremendous support from the cattle industry and the city of North Platte in bringing the idea of more capacity to the beef industry," said Briggs. "The team we have put together to help us build this new plant is top-notch and committed to Nebraska beef."
Briggs noted the company's tag line is, "Right People, Right Place, Right Time."
Citizens in North Platte have been taking to social media expressing concerns about the plant.
One concern is the smell created, not by the processing of the meat, but by the rendering of the by-products that are not safe for human consumption. These products are used in manufacturing and in making feed, among other things.
Briggs and Kemp both addressed this issue, stating that most of the plants operating in North America were built in the 1960s and 1970s. They both stated that advancements in technology, as well as a strategic down-wind location, will help minimize this problem.
One example Kemp gave was covering the lagoon to capture methane which will then be used to create 70 to 80 percent of the plant's power.
Another concern is crime and other socio-economic issues that have been known to accompany meatpacking plants.
A 2005 study conducted by Iowa State University cited Eric Schlosser's 2001 best seller Fast Food Nation which looked at Lexington, Nebraska as an example of the impact of meatpacking plants on communities.
The study noted that "in 1990, IBP opened a slaughterhouse in Lexington. A year later, the town, with a population of roughly seven thousand, had the highest crime rate in the state of Nebraska. Within a decade, the number of serious crimes doubled; the number of Medicaid cases nearly doubled; Lexington became a major distribution center for illegal drugs; gang members appeared in town and committed drive-by shootings."
When asked by the Post if they had looked at any studies on the impact regarding crime and other issues, representatives simply stated that they had not.
North Platte Chief of Police Daniel Hudson told the Post after the meeting that he was confident that his department would be more than able to handle and adjust to anything that may come with the city's growth.
Chief Hudson noted that they would have around two years to prepare and adjust. He said a conversation with Lexington authorities made it clear that Lexington and Dawson County were simply not prepared for the changes IBP brought in 1990.
Tax increment financing, or TIF, will be utilized for the construction of the plant, as well as funding from investors and subscribers. Sustainable Beef says they are working through the municipal process and hope to break ground this fall, with plant operations beginning in early 2023.
"Sustainable Beef is looking forward to working with the City of North Platte in building a new beef plant that will add value to the cattle industry and provide economic benefits to the region," said Kemp.
The project has the backing of Superintendant of Schools Dr. Ron Hansen and Sheriff Jerome Kramer.
Here is today's news conference:
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