Dive Brief:
- Smithfield Foods said Monday it would spend up to $1.3 billion over the next three years on a new combined packaged meats and pork processing plant in Sioux Falls, South Dakota.
- The highly automated facility is set to be “the most modern of its kind in the U.S.,” the pork giant said in a statement, and will help deliver “significant efficiency gains” to the company’s fresh pork and high-value packaged meat operations.
- The building will replace the pork giant’s existing manufacturing facility in the city, which is more than 100 years old. The plant is expected to begin production at the end of 2028.
Dive Insight:
Smithfield is reshaping its U.S. manufacturing footprint as meatpackers face rising costs for live animals and look for new ways to save money.
After a period of low prices, hog costs began rising in 2025 and are expected to continue to increase this year as demand for protein lifts up meat sales, according to a USDA forecast. Record-low cattle supply has also pushed up the cost of beef to all-time highs, prompting more consumers to explore alternatives like pork or chicken.
Although Smithfield is primarily a pork producer, it’s slowly expanded its presence in beef as the company looks to offer more packaged meats like salami or roast beef. The company recently purchased Nathan’s Famous all-beef hotdogs for $450 million, further exposing itself to the volatile cattle market.
To reduce costs, Smithfield has looked to simplify its supply chain and find savings through manufacturing efficiencies. The pork giant recently said it would close a dry sausage plant in Massachusetts, with plans to move production to other facilities.
The pork giant’s current Sioux Falls plant employs 3,200 people and began operating in 1909 under processor John Morrell & Company, which was purchased by Smithfield in 1995. The $1.3 billion investment reflects Smithfield’s strategy to grow packaged meat, which has become one of the most profitable segments for the company.
“Smithfield’s investment supports our long-term strategy of continuing to grow and optimize our value-added packaged meats and fresh pork operations to deliver innovation, convenience and value to our customers.”
Other meatpackers have invested in automation to squeeze savings. Cargill announced a $90 million investment last year in computer vision technology for its Fort Morgan, Colorado, plant that allows the manufacturer to process more meat per cow.
