New beef plant should be good fit for Southwest Nebraska

A McPherson County rancher who saw room for another beef processing company in Nebraska took the bull by the horns and seems to have all his ducks in a row.

After reading the North Platte Bulletin’s account (https://bit.ly/3qXnkz3) of Thursday’s announcement, the main question that remained unanswered seems to be the potential workforce impact on our neighbor to the north.

While David Briggs, CEO of the new cooperative Sustainable Beef LLC company said they had not looked into the potential impact of an immigrant workforce, he did note that the proposed plant is only 20% of the size of the IBP plant in Lexington, a community a fraction of the size of North Platte. In fact, he predicted that Lexington workers would be attracted to higher wages at the new plant.

The rancher, Rusty Kemp, grew up in McPherson County but worked as an account executive for Morgan Stanley for a few years before becoming convinced of the value of Nebraska beef on a trip to Japan and Vietnam with Gov. Pete Ricketts. They share that belief with former Gov. Ben Nelson, who also touted the marketability of “Nebraska Beef” in Asia and elsewhere.

The fact five former Cargill Meats executives are working for the company bodes well for the startup, which predicts it will employ nearly 900 workers and purchase about 400,000 head of cattle per year. Some 75% of the $280 million of needed capital has been committed, and enough cattle suppliers are committed for the one shift now planned, with room for another 100,000 head a year.

Other signs the venture will succeed:

— The plant, construction of which will begin this fall, will be atop a former city wastewater sewage lagoon, which should minimize potential environmental or air quality concerns. Advanced scrappers will clean emissions, a thermal oxidation system will be built into the wastewater lagoon and the resulting methane will even help power the plant.

— Most of the cattle will be purchased within 200 miles of North Platte, a boon to Southwest Nebraska and Northwest Kansas. And, U.S. 83’s conversion to a “Super 2” should help alleviate any problems with increased truck traffic.

— North Platte public schools, with 1,800 empty seats, should be able to handle increased enrollment and would welcome resulting increases in state aid.

— Some 1,100 ancillary jobs such as trucking and restaurant workers, should be created.

— Nationally recognized economist Ernie Goss of Creighton University has been hired to do a full economic impact study, but it is expected to find an impact of $1 billion a year.

–– The property should easily be designated as blighted and substandard, making it eligible for tax increment financing, which the Legislature may soon make even more attractive with a longer payback time.

The disruption created by the 2019 fire in the Holcomb, Kan., beef plant as well as this year’s pandemic had pointed out the need for increased capacity and diversity in the beef industry.

The smaller size of the planned North Platte beef packing plant should be a good fit, reminding us of McCook’s failed attempt to land the Tecumseh state prison, only to become home of the Work Ethic Camp, a much better size for our community.

Congratulations to the entrepreneurs willing to take the risks involved in establishing the new venture, producers who have committed to it, North Platte economic development and city officials, and everyone else involved.