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Smithfield Foods Announces $1.3 Billion Investment in State-of-the-Art Processing Facility
Dive Brief:
- Smithfield Foods revealed plans on Monday to invest up to $1.3 billion in a new combined packaged meats and pork processing plant in Sioux Falls, South Dakota over the next three years.
- The company stated that the highly automated facility will be the most modern of its kind in the U.S. and will bring significant efficiency gains to its fresh pork and high-value packaged meat operations.
- This new plant will replace the existing manufacturing facility in Sioux Falls, which has been in operation for over 100 years. Production at the new facility is expected to commence by the end of 2028.
Dive Insight:
As meatpackers navigate rising costs for live animals, Smithfield is taking steps to reshape its U.S. manufacturing footprint. With hog costs on the rise and demand for protein increasing, the company is looking to streamline its supply chain and find savings through manufacturing efficiencies.
While primarily a pork producer, Smithfield has been expanding its presence in beef and packaged meats, with recent acquisitions like Nathan’s Famous all-beef hotdogs. This strategic investment in Sioux Falls reflects the company’s focus on growing its packaged meat segment, which has proven to be highly profitable.
Other meatpackers, such as Cargill, have also invested in automation to drive cost savings. By leveraging technology like computer vision, manufacturers can process more meat per cow and improve operational efficiency.
Smithfield’s CEO commented, “Our investment supports our long-term strategy of optimizing our value-added operations to deliver innovation, convenience, and value to our customers.”