Producer Owned Beef announces $670 million 'state-of-the-art' beef processing facility in Amarillo

Texas Governor Greg Abbott announced today that the State of Texas, through the Texas Enterprise Fund, intends to support the creation of Producer Owned Beef's state-of-the-art beef processing facility in Amarillo –– the only such facility in the nation to be owned by cattle producers and operated by beef processing industry veterans. Abbott's office presented the award at a launch event in Amarillo today with the support of Texas Economic Development Fund representatives, Amarillo Mayor, Ginger Nelson and Amarillo Economic Development Corporation CEO, Kevin Carter.

“Beef and beef production are part of Amarillo’s culture and history, with nearly 28 percent of cattle fed in the United States coming from the Texas Panhandle region,” said Mayor Nelson. “Beef is a staple of the Amarillo economy, and the addition of Producer Owned Beef, LLC, enhances Amarillo’s role in the beef industry on a national scale. The economic impact is monumental for Amarillo – a $670 million investment and more than 1,500 jobs with an estimated annual payroll of $120 million. This addition to our economy takes what has long been a strength for Amarillo – the beef industry – to another level and confirms that Amarillo is in an historic season of economic growth."

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.

"The importance of Texas Enterprise Fund along with Amarillo EDC backing for this project cannot be overstated" said Casey Cameron, CEO of Producer Owned Beef. "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."

Both Enterprise Fund and AEDC investments are performance-based having been designed for companies whose projects involve significant capital investment and the creation of jobs in Texas.

“Producer Owned Beef will have an incredible impact on the Amarillo area through the estimated $670 million in capital expenditure and $120 million in annual payroll,” said Carter. “This project further positions Amarillo as a global leader in food processing. Being selected as POB’s location for operation signifies that Amarillo is and will continue to be an ideal location to do business. Thank you to the Governor’s Office for their support in awarding the Texas Enterprise Fund grant.”

Producer Owned Beef's 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 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."

Producer Owned Beef Facility Numbers

$670 million state-of-the-art processing facility

3,000-plus head per day processing capacity

Expected employment of up to 1,600 at full capacity

Expected payroll: $121 million annually

Expected groundbreaking: Q1 2023

Expected operating date: Q4 2025

Locations: 1,108 acres on Jack Rabbit Road (Spur 228) between I-40 and Hwy 287

"'Made in Texas' is a powerful global brand and continues to attract investment from companies serving crucial industries," said Governor 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."

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