Mills County beef plant gets $150m investor

John Van Nostrand, The Creston News Advertiser, Iowa
·4 min read

Feb. 13—DES MOINES — Cattlemen's Heritage Beef Company announced last month Karis Capital of Naples, Florida, is investing $150 million in the company's planned facility in Mills County. The investment will allow Cattlemen's Heritage to move forward with groundbreaking for the plant later this year.

"This $150 million strategic investment by Karis represents a critical milestone in the Cattlemen's Heritage plant," said Chad Tentinger, principal developer for the project. "With this investment secure, we can break ground later this year. We will also be able to finalize bank financing and government incentives for a project that will provide high-quality, sustainable beef for consumers and significant economic benefits for the state of Iowa and for cattle producers."

The plant will also be an appealing option for Union County cattlemen.

"It will be a great choice," said Wayne Lents, a member of the county group. "There is a place in Tama and one in Sioux City." Having another choice, closer, will be a benefit he said.

As producers keep their operations financially efficient, Lents said sending cattle to farther places potentially loses profit and quality of the cattle.

"You lose everything," he said.

Supporters of the plant, to be located along Interstate 29 north of Glenwood, were in Adair and Union counties a year ago looking for investors.

Tom Thompson feeds cattle in Adair County. He said it will be great to have another choice in the region as he is familiar with Tyson plants in metro-Sioux City and Illinois and other facilities in Omaha and Schuyler, Nebraska.

"You like to think it will be helpful. Their goal is investors will have cattle and the cattle will be secured and not bid on," he said.

Thompson said the timing of the announcement comes at an important time.

According to the USDA Jan. 31, there were 89.3 million head of cattle and calves on U.S. farms, according to the Cattle report published by the department's National Agricultural Statistics Service (NASS). Other key findings in the report were:

* Of the 89.3 million head inventory, all cows and heifers that have calved totaled 38.3 million.

* There are 28.9 million beef cows in the United States as of Jan. 1, 2023, down 4% from last year.

* U.S. calf crop was estimated at 34.5 million head, down 2% from 2021.

* All cattle on feed were at 14.2 million head, down 4% from 2022.

Thompson said the lengthy dry weather in western states is a leading factor of fewer cattle in the report.

According to Jake Finley, the Founder and CEO of Karis, the Cattlemen's Heritage project represents a unique investment opportunity that combines our access to capital and development expertise to an industry in need of modernization. "We see extraordinary consumer demand for low-carbon, high-quality beef that's produced in a sustainable way, and the Cattlemen's Heritage project does just that," Finley said. "It will have the latest in technology with a focus on sustainability along with the highest standards for plant employees and animal welfare. That's exactly what investors and consumers are looking for."

In addition, the Cattlemen's Heritage plant will represent an economic gain of $8 billion for the state of Iowa through construction and plant operations until 2028, according to analysis by Ernie Goss, the Jack A. MacAllister Chair in Regional Economics at Creighton University. Currently, Iowa farmers are transporting approximately one million head of cattle out of state each year, causing the state to miss significant opportunities for jobs, income, economic activity and tax revenues.

"Iowa pays a heavy price due to its insufficient number of beef-processing facilities. Those costs are borne by virtually everyone in the state of Iowa, directly or indirectly, but farmers and rural communities pay a heavy toll," Goss said. "The addition of the planned Cattlemen's Heritage facility in southwest Iowa means 400,000 head of cattle will remain in Iowa for harvesting and processing, generating an economic gain between now and 2028 of $8 billion."

The Cattlemen's Heritage project will also benefit cattle producers in Iowa and surrounding states by helping them capture more for the beef retail dollar through the company's shackle space program, which closes in June.

Additional Investments and Partnerships

According to Tentinger, the Karis Capital investment paves the way for additional funding and partnerships. "Given the public interest and benefits associated with the project, we continue to work with federal, state and local government officials who have previously expressed support," Tentinger said. "We also continue to explore retail and other partnerships. Look for more news on those developments in the weeks to come."