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JBS to Invest $100 Million in Iowa Facility for Bacon and Sausage Production
JBS, a Brazil-based meat processor, has announced plans to spend $100 million to acquire and transform a facility in Ankeny, Iowa into its largest bacon and sausage plant in the U.S. The 186,000-square-foot facility, previously owned by grocery chain Hy-Vee, will undergo capital investments to enable production of sausage and bacon by mid-2026.
This investment is part of JBS’s strategy to expand its manufacturing network in the U.S., particularly in the pork and chicken segments. Earlier this year, the company revealed its intention to build a $135 million sausage plant in Perry, Iowa.
Increasing Demand for Pork and Chicken
Consumer preferences have shifted towards pork and chicken, driven by higher beef prices. JBS has recognized this trend and is investing in increasing its production capacity to meet growing demand. The company’s majority-owned Pilgrim’s Pride is also planning a $400 million plant in Georgia, further boosting its production capabilities.
JBS’s Chief Operating Officer, Wesley Mendonca Batista Filho, emphasized the need for more production capacity to support the company’s growth in the U.S. market. He highlighted the importance of having sufficient capacity to meet consumer demand and drive sales.
With a cattle shortage impacting beef prices, pork has become a more affordable option for consumers. JBS’s pork unit in the U.S. faced challenges due to trade restrictions with China but remains resilient with strong business fundamentals.
Creating Jobs and Expanding Operations
The Ankeny plant is expected to generate approximately 400 jobs once fully operational, offering employment opportunities to former Hy-Vee employees. JBS currently operates four production facilities in Iowa, with the Perry plant supplying raw materials to the newly acquired facility in Ankeny.
By investing in expanding its bacon and sausage production capacity, JBS aims to meet the growing demand for pork and chicken products in the U.S. market. The company’s strategic investments reflect its commitment to innovation and growth in the meat processing industry.