Greater Omaha Packing Will Expand 30%
A $20 million USDA grant will spark expansion at Greater Omaha Packing Co., in South Omaha, Neb. Agriculture Secretary Tom Vilsack traveled to Omaha Wednesday to announce the grant as part of an initiative to increase competition in America’s meat industry.
The Biden administration announced $223 million in grants and loans this week to increase competition and economic opportunities for meat and poultry processors. The administration has said a lack of competition in the industry has both depressed prices for producers and raised prices for consumers.
Greater Omaha will use the grant as part of a planned $100 million investment to upgrade and automate freezers, expand its wastewater system for increased capacity, remodel key areas for value added further processing, and increase its carcass holding coolers. In total, the Greater Omaha team estimates the capacity expansions will help Greater Omaha process an additional 700 head of cattle per day.
“This significant investment will allow the company to remain competitive in the marketplace and continue to support our small family feeder operators while providing incremental value back to the producers,” said Henry Davis, CEO of Greater Omaha. “We believe the production expansions will keep us at the forefront of an ever-changing industry.”
Greater Omaha is the nation’s fifth largest beef packer with daily harvest capacity of 2,400 head and employs 1,500 workers. The company said it will expand its capacity by nearly 30% (700 head per day) by adding another line at the plant and add 275 jobs with the grant. The company ships beef across the nation and to more than 70 different countries.
“I think this is a good day for producers, a good day for those interested in working in the facilities, a good day for the communities who will benefit and a good day for consumers,” Vilsack said of the initial round of grants being released Wednesday.
The Biden administration plans to invest $73 million to fund 21 grant projects in the first round of the Meat and Poultry Processing Expansion Program, or MPPEP; $75 million will go to eight projects through the Meat and Poultry Intermediary Lending Program; and another $75 million will be directed to four meat and poultry-related projects through the Food Supply Chain Guaranteed Loan program.
“Since President Biden laid out a commitment at the start of this year, USDA has worked tirelessly to give farmers and ranchers a fair chance to compete in the marketplace,” Vilsack said in Omaha. “By jumpstarting independent processing projects and increasing processing capacity at facilities like Greater Omaha Packing, these investments create more opportunities for farmers and ranchers to get a fair price, while strengthening supply chains, delivering more food produced closer to home for families, expanding economic opportunity and creating jobs in rural America.”
Greater Omaha is one of only two MPPEP grant recipients in Nebraska, with a total of $73 million funds distributed across 21 grant projects in USDA’s first round of funding announced through Phase I of MPPEP.
Related:
