Investor says producer-owned processing plant a well positioned against Big 4
An investor in a producer-owned processing plant says he’s not concerned about competition from the nation’s largest meat packers.
Nebraska rancher Rusty Kemp is a shareholder of Sustainable Beef located near North Platte. “We’re going to have the most modern plant in the United States. We’ll be able to adopt to technology quicker. Some of these plants are 50 to 60 years old, and it’s hard to update technology.”
He tells Brownfield interest is still high despite stronger cattle prices. “Everybody that got involved with this project was in for the long haul. We’ve all been around the block, and we know there are good prices and there are bad prices. We’re just going to make this work regardless.”
Kemp says a partnership with Walmart’s recently announced retail store in Olathe, Kansas, helps provide stability in the marketplace. “Having all of the meat sold is a great advantage, and they’re a great American company. Some of these start ups struggled in the past because it’s hard when you don’t have customers and the only way to move your product is be the lowest price guy.”
Sustainable Beef broke ground earlier this year and is scheduled to come online in the first quarter of 2025.