MITCHELL, S.D. — When Smithfield Foods announced earlier this month that it planned to move its pork processing facility from downtown Sioux Falls to a new plant on the northern edge of the city, the development was hailed as a win for the South Dakota pork industry.
The $1.3 billion facility would replace the company’s aging plant with a new state-of-the-art facility and ensure a strong market for the in-state producers who raise over 2 million of the animals yearly. One of those producers, Brad Greenway, who raises hogs near Mitchell, said he likes what that means for South Dakota producers.
“It’s just great for the producers, and to think that there’s going to be a new state-of-the-art plant coming to, and staying in, Sioux Falls? I think it’s just tremendous,” Greenway said. “It will definitely help the pork industry looking into the future.”
Improved transport
Greenway should know a thing or two about the South Dakota hog industry.
The Mitchell area farmer, who raises about 14,000 hogs a year in addition to cattle and row crops, has been a member of the Davison County Pork Council for 30 years as well as served on the South Dakota Pork Producers Council from 2000 to 2015, including as president from 2005 to 2006. He also served on the National Pork Board from 2009 to 2015, and most recently was a board member for U.S. Farmers and Ranchers in Action and served as chairman from 2016 to 2018, as well as received numerous awards for his work in the industry.
His operation sells hogs to a handful of processors, including Wholestone in Fremont, Nebraska, an operation he co-owns with about 230 other producers, as well as Tyson. But he also sells hogs to Smithfield Foods, and he is already anticipating improvements in facility upgrades, efficiency and transportation.
Navigating trucks full of hogs through the downtown neighborhood of Sioux Falls is a tricky proposition. The more open, industrialized area that Smithfield is expected to call home in the future is much more receptive to hosting large gatherings of semi trucks, and its proximity to major transportation arteries should make hauls easier.
That should result in smoother transport and less time spent behind the wheel for drivers, both of which mean savings for producers.
“The ease of getting in at that location compared to where it’s at now, I think it’s going to be a huge benefit to the truckers. I know they’re going to be excited about it. And I think a state-of-the-art plant, a better location, not only for access for trucks and the animals going in, but just the longevity of the pork industry in South Dakota is great news,” Greenway said.
A plant to meet demand
The current Smithfield facility — which was known as John Morrell and Co. for much of its existence in Sioux Falls — was built in 1909 and is both one of the oldest and largest pork processing plants in the country. It has served its purpose over the decades, but many have said it is outdated, having been built less than a decade after the end of the 19th century.
Complaints of odor from the plant have been an issue for years, and its multi-floor setup is less than ideal for the work being done, Greenway said. That should change when the doors open on the new plant in 2028 at Foundation Park.
“I think the way I understand it will increase capacity a little bit, and with a newer plant and its efficiency, what they can throughput in a day I’m sure will increase, so again that’s better access for pork producers and more numbers going into the Smithfield plant,” Greenway said.
That production will be needed to meet consumer needs. Greenway said domestic demand for pork remains high, and with beef prices at record highs — roughly $6.75 per pound as of January — relatively inexpensive pork is an affordable substitute or supplement to beef.
The new plant could also impact what consumers will find at the store. Some processors are starting to offer more products that are simple and quicker to prepare, easy to pull off the shelf and take home and cook. Whether those types of products come out of the new Smithfield plant remains to be seen, but Greenway knows it’s a growing trend.
“A number of people like case-ready where they can actually pick up a marinated loin. Consumers are looking for things that are more case-ready, able to cook faster. Whether Smithfield goes more into that area, I do not know, but I know in our plant we’re starting to look at products like that,” Greenway said. “Meet the demand where it is. If consumers are asking for some of these products, I’m sure you’re going to see the plant go in that direction.”
Glenn Muller, executive director for the South Dakota Pork Producers Council, said the benefits go beyond efficiency for hog producers and an affordable product at the store. The new plant ensures thousands of people employed by the plant will have jobs. That means more money spent in the community, and money spent in the community drives growth.
“If you look beyond the producers, the impact it has for the economic development in the area (should be considerable). They have a $200 million payroll every year, they employ over 3,000 people in their plant. You just look at the economic impact that’s going to have on the community, it’s a win-win for everybody,” Muller said.
The pork industry landscape would look much different without a processor of Smithfield’s scale in the area, Muller said, and not for the better. The current plant had to temporarily shutter operations during the COVID-19 pandemic, leaving producers with limited options on getting their hogs to market.
That could be an everyday situation if the plant were to close instead of relocate. He said the new plant means a more secure food supply chain.
“You have to look at the food security part of it. When we have product harvested that close to our area we can be really comfortable that there’s going to be product available,” Muller said. “We saw during COVID the impact that it can have if you don’t have processing in the area when we lost Smithfield for a short timeframe there. It impacted everybody, and food security became a major issue for us.”
Environmental considerations and beyond
There is plenty more to be excited about, Greenway said. A new plant likely means more automation, another advancement that improves efficiency, especially in a state where unemployment is low and finding workers can be a challenge. Modern technology should also help minimize the environmental issues such as the infamous odor and the plant’s impact on the Big Sioux River.
Those potential changes aren’t just lip service, Greenway said. Consumers care about more than just prices — they like a system that doesn’t negatively affect the soil and air, too. Producers know that, and so do processors, Greenway said, and good stewardship of the land and animals is always a priority.
“We try to improve each day, and I am sure Smithfield is doing the same thing. We’ve got land that’s been in my family for almost 100 years. I can honestly say I think the ground is in better shape, or just as good shape, as what it was 100 years ago. Taking care of the environment is the number one concern,” Greenway said. “Consumers have got to have confidence in what we do, and the confidence in what Smithfield does because we need to have that confidence in the consumer so they’re willing to buy our product with confidence.”
The new plant also indicates industry confidence in the South Dakota pork sector in general. The commitment of Smithfield investing $1.3 billion in a new facility shows producers like Greenway that they plan to be part of the regional market for years to come.
That’s encouraging to Greenway, and he thinks it will be encouraging to the next generation of pork producers — the ones who will guide the pork industry into the future.
“It’s exciting for the next generation. We see that in our farm. We know the next generation is coming back. But even right now, you look at the South Dakota State Pork Council and the amount of young people that are there, that’s exciting to see,” Greenway said. “So there’s optimism in the pork industry right now.”
