Producer Owned Beef announces $670 million facility in Amarillo during event Wednesday

Producer Owned Beef announced Wednesday morning during a ceremony held in downtown Amarillo that it has been awarded $12.2 million from the Texas Enterprise Fund for its forthcoming beef processing facility to be built in Amarillo.

Executives of Producer Owned Beef and local officials were on hand at Six Car Brewery on South Polk Street for a live telecast from Texas Gov. Greg Abbott announcing the state economic incentives for the $670 million dollar facility to be built in the Texas Panhandle. These incentives are in addition to up to $11.1 million from the Amarillo Economic Development Corporation (AEDC) and the city of Amarillo approved earlier to draw the facility to the area.

More:Amarillo City Council approves tax incentives to incentivize $2.5 billion in investment

During his video, Gov. Abbott emphasized the need to support these types of projects which benefit the expansive cattle industry that Texas leads the nation in.

“Made in Texas is a powerful global brand and continues to attract investment from companies serving crucial industries,” Abbott said. “Producer Owned Beef's selection of Amarillo for its new beef processing plant further reinforces the Panhandle as a leader in U.S. beef and beef production.”

The Texas Enterprise Fund is meant to award grants to companies considering a new project for which a Texas site competes with other out-of-state sites. Companies can apply if they are planning a new project that includes an opening or expanding a facility, with “significant projected job creation and capital investment,” as the fund is intended to serve as a financial incentive for companies to contribute investments and employment opportunities to Texas.

“The importance of the Texas Enterprise Fund along with AEDC backing for this project cannot be overstated,” Casey Cameron, CEO of Producer Owned Beef. “Public Private Partnerships are proven to attract additional investors and create a virtuous cycle of commerce, employment and tax revenue for our communities and state."

Cameron stated that their commitment is to build a facility that stands out in the industry in metrics, such as animal well-being, environmental protections, employee safety and high-quality beef products.

Expected to employ about 1,600 people in the region, Producer Owned Beef’s objective is to have the ability to process more beef in the region that the cattle actually come from, thus reducing costs for beef to be sent to other areas like Colorado for processing. The company is owned by cattle ranchers and feeders, which would differentiate it from other facilities in the area.

With an expected groundbreaking date of 2023 on Jack Rabbit Road between Interstate 40 and Highway 287, the facility is expected to begin operations by late 2025 with a payroll of around $120 million annually. The beef facility is anticipating being able to handle 3,000 or more head in processing capacity per day.

According to the leadership of Producer Owned Beef, this facility will be the only in the nation to be owned by cattle producers and operated by industry professionals. Cattle producers involved with the facility will receive a percentage of wholesale beef prices for the cattle supplied as a share of profits from the plant.

“Many of our ranchers and feeders are third, fourth or even fifth generation producers who have invested their lives in feeding Americans,” Monte Cluck, a board member of Producer Owned Beef, added. “With this model, we are creating economic sustainability for small- and medium-sized producers by ensuring they receive a greater share of the financial upside for the hard work that they do.”

John Smithee, Texas State Representative for the 86^th District, was on hand to speak about the historic deal for the Panhandle and its impact on the industry, which is a major economic driver for the region.

“This deal is going to cement this area as the beef capital of the world,” Smithee said. “To have this facility in our area is a wonderful thing for all of us.”

Kevin Carter, the CEO of the AEDC, spoke about how adding this facility, along with many of the other big projects that his corporation has been involved in, is helping to create an expansive and diverse business economy over the years. He said today’s announcement was special because it was getting back to the roots of what has made the Amarillo economy what it is.

“Today is an important day in the future of Amarillo and the Texas Panhandle,” Carter said. “Producer Owned Beef will revolutionize the beef industry by combing the producer and processor sides of the business. This combination will ensure that valuable resources remain in the area. The capital investment and annual payroll will impact the Amarillo area with more than $1 billion economic impact.”

Mayor Ginger Nelson came on stage to close the event, fired up about the future impact of the facility on her city and the region.

“My heart is soft this morning because these are our people that have worked really hard to make this happen,” Nelson said. “I know that these faces represent who we are in rural America. Right now, we are struggling for our voice to be heard, and we need affirmation to know that the impact our character and values has on our country is making a difference.”

Nelson said that this facility would help decrease the reliance on foreign ownership and supply chain decisions that affect the nation’s food supply and the world. She said that Amarillo had gained a global reputation for being unique in its growth and opportunities.

She said the reason that the region has been able to get these types of projects done is by working together to make these opportunities happen. She thanked the owners of the new facility and all those that worked to make it happen.

“We have changed the tone. We do things together instead of divide,” Nelson added. “It is really easy to throw rocks and destroy things, but it is really hard to come up with an idea and to move that idea from vision to execution.”

When asked about her excitement in her speech today, Nelson said that it is hard not to be passionate about all the great things that are happening with businesses moving to the region.

“We have created a national reputation, a place of opportunity for business to come to,” Nelson said. “Growth and opportunity come when you wisely invest with resources behind them. We are winning the competition to bring economic opportunity to the area.”

This article originally appeared on Amarillo Globe-News: Producer Owned Beef announces $670 million facility in Amarillo