August 15, 2022
Texas Gov. Greg Abbott announced today that business cooperative Producer Owned Beef LLC (POB) will create a new beef processing plant in Amarillo. The plant, which will be the only such facility in the nation to be owned by cattle producers and operated by beef processing industry veterans, will harvest 3,000 cattle per day and sell beef and beef byproducts both in and out of Texas.
The project will create more than 1,500 new jobs, generate $670 million in capital investment and have an estimated annual payroll of $120 million. A Texas Enterprise Fund (TEF) grant of $12.2 million has been extended to POB as well as a Veteran Created Job Bonus of $8,000 has been offered.
"'Made in Texas' is a powerful global brand and continues to attract investment from companies serving crucial industries," said Gov. Abbott. "Producer Owned Beef's selection of Amarillo for its new beef processing plant further reinforces the Panhandle as a leader in U.S. beef and beef production and will create over 1,500 new jobs and millions in investment for the region. We welcome Producer Owned Beef to Amarillo and look forward to working with the company to keep Texas the economic engine of the nation."
Casey Cameron, chief executive officer of Producer Owned Beef, commented, "We are excited about the continued momentum of Producer Owned Beef with the Governor's support through the Texas Enterprise Fund. This further reinforces the Amarillo Economic Development Corporation and the City of Amarillo's commitment to building our new beef processing plant in Amarillo.”
Texas State Rep. Four Price, R, said having a stable U.S. food supply is vital to national security. "This additional beef processing facility in Texas will help meet our consumer demand for quality protein for the family dinner table."
Groundbreaking is planned for Q1 2023, with an expected operating date of Q4 2025.
Producer owned beef independent model
Producer Owned Beef’s innovative business model restores balance in the beef industry by reversing compensation disparities cattle producers currently face. As owners of the company, producers will receive a percentage of 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 POB 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.”
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