A U.S.-Canada group planning a producer-owned beef processing company has decided two smaller plants are better than one big operation.
Northern Plains Premium Beef, a closed co-op representing 3,000 cattle producers in the northern U.S. and prairie provinces, thinks the two-site design will improve quality control and worker safety.
Food Plant Engineering, a U.S. planning, engineering and construction management firm, has helped Northern Plains study domestic and foreign packing plants.
Ryan Taylor, Northern Plains spokesperson, said the design for the plants features a processing line, or chain, that moves much slower than most big plants.
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“We’ve seen that slower chain speeds reduces the rate of turnover on employees, which is a huge cost in the processing industry,” he said.
A better work environment should lead to lower employee costs that over time will cover the increased costs of two-site production, he said.
“Also slower speeds will allow us to do a better job of carcass data collection … and product quality in terms of food safety.”
A cleaner product will be better for consumers and will give the product a longer shelf life.
The decision does not mean Northern Plains has given up on the possibility of buying the unused plant in Brandon, Man.
Taylor said the system could be used in a new or an existing plant.
The co-op will decide on plant locations after it has completed an equity drive early in 1997.
With seed money from more than 3,000 producers and government grants, about $1 million has been raised.
Northern Plains has scheduled a series of meetings in January to present its case for investing in the co-op.
Meetings in Canada are in Kipling, Sask. Jan. 13, Brandon, Man. Jan. 14 and Morris, Man. Jan. 14.
