Premium Standard Farms broke ground today on a new addition to the Milan processing facility that will increase daily capacity by 35 percent. The $23 million construction project will create 50 new jobs.
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Premium Standard Farms broke ground today on a new addition to the Milan processing facility that will increase daily capacity by 35 percent. The $23 million construction project will create 50 new jobs.
“New jobs and increased tax base are the life blood of rural communities,” said State Rep. Bob Behnen of Kirksville. “We’re pleased PSF has chosen to expand their Milan business and we look forward to the economic growth the expansion will bring to rural north Missouri.”
Construction is expected to take approximately one year. It will allow PSF to increase daily processing capacity to 10,000 head – an increase of 2,600 per day.
Besides the new processing and cooler space needed to increase daily capacity, expansion plans call for an upgraded waste treatment system and improved employee welfare areas.
It’s the first physical expansion of the plant since it opened in Milan during the fall of 1994.
“Milan is a great place to do business,” said John Meyer, chief executive officer at PSF. “We appreciate the successful partnership we’ve enjoyed with rural north Missouri these past 12 years and we’re pleased to play a role in the renewed economic vitality of the region.”
The additional jobs will add $1.5 million to the company’s current $68 million payroll in north Missouri. PSF paid $2.7 million in property and real estate taxes in eight north Missouri counties in 2005 – including $264,070.35 in property taxes for the Milan processing facility. There are no plans for PSF to build new sow farms to meet the demand for more hogs.
When complete, the expansion will create the opportunity for PSF to purchase hogs from independent Missouri producers who can meet the company’s Processed Verified Program standards. PSF operates a similar integrated model on the East coast. At the company’s processing facility in North Carolina, approximately 25 percent of the hogs come from independent producers who are Process Verified.
Process Verified is a USDA program that assesses quality management processes including traceability through comprehensive documentation. This program allows PSF to provide assurances to customers that they are receiving the safest, most wholesome product available.
PSF is one of the largest vertically integrated providers of pork products in the United States, producing consistent, high quality pork products for the retail, wholesale, foodservice, export, and further processor markets. PSF is the nation’s second largest pork producer and sixth largest pork processor, with approximately 4,100 employees working at farms and processing facilities in Missouri, North Carolina and Texas.