Proposed slaughter/processing plant meeting sheds light on project

By LORI COPE | East Texas Edition

May 2, 2002 -- A group of "very interested, well-informed people" attended the April 18 meeting in Paris which addressed the proposed slaughter cow/processing plant, to be called American Native Beef, Inc., in southeastern Oklahoma.

"There were not as many people as we would have liked, but we had a select crowd of well-informed people who asked the right kind of questions," noted Don Covington, a Hugo, Okla., cattleman and a member of American Native Beef (ANB) steering committee.

"The need for a processing plant in this general area (is present) because there is not a substantial sized processing plant for cows and bulls in a 300-mile radius," said Covington in an earlier interview.

Many in attendance at the April 18 meeting were Northeast Texas cattle producers or agribusiness leaders. Brian Cummins, Van Zandt County Extension agent, agreed such a plant is "something we need in this area. ... In the last five years we've lost three cow-killing plants that were east of I-35 where the cows are."

Cummins figured the three plants had a total of 2,000-head per day capacity.

Texas has five, large-volume slaughter cow processing facilities. Three have capacity for more than 70,000: Caviness in Hereford, L&H in San Antonio, and Lonestar Plant in San Angelo. The other two plants have less than 70,000 head capacity: Booker Pack in Booker, and San Angelo Pack in San Angelo.

Oklahoma has two, large-volume processing plants -- one in Oklahoma City and one in McAlister-- which take on about 11,250 head a year; but about 85 percent of Oklahoma's slaughter cows are shipped to Nebraska and Texas.

Covington pointed out there is a great need for a slaughter plant close to Arkansas as well.

Often slaughter cows and bulls in Northeast Texas and surrounding area travel hundreds of miles to reach a plant. "These weaker cattle can't make a 400 or 500 mile trip," Covington said. "Instead they would have a two-hour haul versus a 10-hour haul" if the plant is constructed in Southeastern Oklahoma.

"Any time you can reduce the freight (expense) on these cattle, that's a good thing," Cummins added. "From here in Van Zandt County, it's a 338-mile haul to San Angelo. It'd be about 120 or 130 miles to Hugo."

The proposed ANB facility would use state-of-the-art equipment to process the beef.

"I think having a cleaner product out of a brand new plant would be beneficial," Cummins said, in regard to the environmental and/or health code problems faced by older plants.

Covington indicated another informational meeting will be held in Sulphur Springs in late summer or early fall. "We feel this is another key area (for slaughter cows from dairies)."

Then later this year, Covington said he hopes plans are advanced enough that public stock offerings can be made for ANB. The proposed plant would be structured as a closed cooperative-member owned entity. Cattle producers would profit marginally from the sale of their cattle, but mostly from the plant's beef sale successes.

"The closed cooperative plan is similar to many others in the Northern Plains states," noted Covington. "This means that a public stock offering will be made for a short period, then closed. These initial investors will then share in the profits of the corporation."

So far, feasibility studies are continuing on such a plant in the region. Information from these studies are available at the meetings, or from Covington, (580-326-3098).