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Plans for slaughter/processing plant progress |
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By LORI COPE | East Texas Edition |
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September 26, 2002 -- The latest strategy for the up-and-coming American Native Beef, Inc. slaughter/processing plant is to conduct "producer information meetings," one of which is set for 7 p.m. Thursday, Oct. 3, at the Hopkins County Regional Civic Center, Sulphur Springs. American Native Beef (ANB) has plans to build a "$20 million harvesting and processing plant in southeastern Oklahoma. The plant would initially process 400 head per day or about 102,000 per year," cited ANB spokesman Don Covington. The ANB facility would slaughter cattle and process the by-products. Both aspects are needed - one to be of service to producers within a 250-mile radius of southeastern Oklahoma, and the other to generate greater profits for the producers/stockholders. Currently, slaughter cattle "are shipped over 350 miles to San Angelo, Texas, or over 500 miles to Gibbons, Nebraska for processing," Covington explained. This duration depletes producers' profits due to freight costs and cattle shrinkage. "Nearly 5 million total head of cattle are located within 200 miles of this area (southeastern Oklahoma) and must have over 600,000 head replaced every year." Texas has five slaughter/processing facilities. Three have capacity for more than 70,000 head annually: 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. "We have all these cows in Oklahoma, and all these cows in Northeastern Texas, and no cow killers here," said Gary Bledsoe, a marketing consultant for the Oklahoma Department of Agriculture, in an earlier interview. "We ship cows as far as Michigan, over 1,300 miles away. That freight is costing someone something." Products made at ANB "will be further processed to some degree, such as whole cooked roasts, sausages, microwaveable meals, and frozen beef patties," Covington said. "A very detailed feasibility study indicates that a substantial return on investment is likely with the further processing. The plant will be built and operated using methods now common to New Zealand, which ensures a near-bacteria-free product," he continued. Covington also noted the plant "will be geared to encourage low labor turnover and be as aesthetically attractive to a community." A definite site for the plant is expected to be announced before Nov. 1. At that time, a 90-day stock offering will be made. "This will be a producer-owned, closed-cooperative business structure which means that a public stock offering will be made for a short period of time, then closed. These original investors will be the only stockholders unless profits dictate a later expansion of the plant," Covington said. Profits will pass to investors through annual dividends. Stock will be offered for sale in Texas, Oklahoma, Missouri, Arkansas, and Louisiana. Beef and dairy cattle producers, and "all agricultural producers, whether (involved with) cattle or not," Covington cited, are encouraged to attend the Oct. 3 meeting in Sulphur Springs. Several meetings have already been held to inform regional ag leaders about ANB. An Oct. 10 meeting at the Lamar County Extension office and was attended by seven ANB representatives plus Extension agents representing nine counties: Brian Cummins, Van Zandt; Donnie Peters, Delta; Larry Spradlin, Hopkins; Galen Logan, Camp; Kenny Rollins, Titus; Lynn Golden, Red River, Mike Morrow, Lamar; Rick Maxwell, Fannin, and Mark Arnold, Grayson. Also at the Oct. 10 meeting, two Fannin County cattle producers - Jim Frehner and Brad Jones - attended. Covington said interest in the new ANB plant "has snowballed. ... And we couldn't have better neighbors than our neighbors to the south. And by neighbors, I mean those in 35 counties in north-central to north-eastern Texas." For more information about ANB or the Oct. 3 meeting, contact Covington at 508-326-3098 or Mason Mungle at 405-491-1594. |
