J.R. Simplot, Caviness Beef Packers Build New Beef Processing Plant
Amarillo, Texas-based Caviness Beef Packers formed a joint venture with J.R. Simplot Co., Boise, Idaho, to build a new beef processing plant in Kuna, Idaho.
Pending approval of permits from all necessary regulatory agencies, construction of the nearly 300,000-square-foot plant will begin in the spring, with an expected fall 2016 opening.
The new joint venture will operate under the name CS Beef Packers, LLC, and is expected to invest $100 million to complete construction of the plant.
The plant is expected to process a maximum of 1,700 head per day, and could create up to 600 new jobs.
The primary purpose of the plant will be to harvest cull cows and bulls from Northwest dairy farms and cattle ranches throughout the Intermountain West. The plant will also include hide and rendering processing and have the ability to process niche-fed beef programs.
“The new plant will be the first significant processing operation in the region, reducing the need for dairy farmers and ranchers to ship cattle out of the area for processing,” says Scott Simplot, chairman of J.R. Simplot. “This effort complements the area’s dairy industry, including milk, cheese and yogurt processors. Our company has farmed and ranched in the area for nearly a century, and we’re excited to be a part of this joint venture that will further guarantee the long-term success of the region’s dairy and beef industries.”
“Together, we will bring significant strengths and expertise to this project,” adds Terry Caviness, chief executive officer of Caviness. “We look forward to being a valued partner to area ranchers and dairymen, as we expand our footprint in the United States with another world-class beef packing facility.”
The new plant will take advantage of advances in food safety and process technologies to create a processing facility that incorporates the best available technologies to effectively, safely and humanely process beef. The final product will be prepackaged boxed beef that will primarily be marketed toward foodservice suppliers and retail outlets.
“We are excited to bring a new advanced plant to the area. This plant is ideally suited to meet the increasing demand for processing from the dairy and beef cow industry,” says Tom Basabe, president of Simplot Land and Livestock. “Caviness Beef has a long history in beef processing. Caviness is the perfect partner to join Simplot in this joint venture.”