Pork Leader Pat McGonegle: Pork Sausage Plant is a Win for Producers

JBS USA, a Colorado-based food company, announced last week that it plans to build a $135 million dollar pork sausage production plant in Perry, Iowa. The announcement came as welcome news for the town of Perry. Tyson Foods announced in March 2024 that it would shut down its meat processing plant in the Dallas County town leaving more than a thousand employees without work. It also cost Iowa hog producers: they suddenly had one fewer buyer for their product. 

RELATED: Learn more about JBS USA’s plans for the pork sausage facility in this story from American Farmland Owner.  

Iowa Pork Producers CEO Pat McGonegle said this new plant is positive news for Iowans who raise sows because it opens new opportunities. He said there are currently about 5,000 pork producers in Iowa, with most of them in the northwest part of the state.

When the Tyson Foods plant shut down, some of those producers had to find an alternative for their sows. “There is currently one other outlet in Iowa, so this gives producers another alternative,” McGonegle told American Farmland Owner about the new possibility in Perry.

The other plant, Pine Ridge Processors, is in Des Moines.  

Tight Margins for Pork Producers

Giving producers another option can be critical in terms of trimming expenses. Right now, some of the producers are forced to transport out of state and foot the bill for the trip. “It varies, but in most cases, it is the responsibility of the producer,” McGonegle said.

The longer the drive, the more money they may have to pay.

McGonegle also said the facility is good news for the agriculture economy as a whole. Pork is big business in Iowa, bringing $15.4 billion in value-added activities each year.

This is essentially the profit or income generated by an industry after covering the costs of materials, labor, and other inputs. Here is a breakdown of the total value added:

• $9.9 billion from hog production

• $3.9 billion from hog slaughter

• $1.5 billion from hog processing

  
  

According to the USDA, pork ranks third in annual U.S. meat consumption, behind beef and chicken. It accounts for approximately 50% of daily meat protein intake worldwide.

McGonegle said about 120,000 people are employed directly or indirectly by the pork industry. He said his association is grateful for the work of the Iowa Department of Economic Development and local leaders in bringing the facility, and its jobs, to Perry.

Pork Sausage Plant Feeds Optimism for Producers

Producers are also hopeful about the opening of the new facility. “We’re excited to see continued investment in Iowa’s pork industry with the proposed opening of this new processing facility,” said Aaron Juergens, a pig farmer from Carroll and president of the Iowa Pork Producers Association.

“It strengthens our state’s leadership in pork production,” he added, “creates new opportunities for pork producers, and supports the rural communities that are the backbone of Iowa agriculture. This is a win for pig farmers, Iowa’s economy, and for the Perry area.”

McGonegle said the new proposed facility in Perry won’t necessarily make pork less expensive for consumers. Supply and demand are the strongest dictator of prices. But overall, he believes, this is good news for everyone.

“When producers have more market opportunities, that is a positive step for producers,” McGonegle concluded.