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PSF expanding hog slaughter capacity in Missouri

Agriculture.com Staff 01/03/2006 @ 1:13pm

Premium Standard Farms, Inc. announced today its board of directors has approved a plan to expand the capacity of the company's Milan, Missouri hog processing plant by 35%.

The improvements would increase processing levels to 10,000 head per day from the current capacity of 7,400 head per day. PSF says the expansion represents about 15% of additional total company processing capacity.

With 221,000 sows, PSF is the nation's second largest pork producer, according to the 2005 Pork Powerhouses list from Successful Farming magazine. Just under half of the company's sows, 108,000, are located in Missouri, according to that article.

PSF says it will acquire the additional hogs to supply the Milan plant from three sources:

* PSF's Missouri farms, which the company says, have experienced increased productivity from the existing sow base.

* Outside producers that would become part of PSF's Processed Verified Program.

* Some of the hogs may also come from PSF's Texas operations.

The planned ramp up of capacity will begin in the second quarter of calendar year 2007, the company says.

"This investment will allow us to meet increasing international and domestic demand for our products as we continue to further enhance our export business and expand our domestic customer base," John Meyer, CEO of Premium Standard Farms, said in a company release.

"The expansion will help us to achieve our strategic goal of moving more of our business mix into the processing segment," he said.

The company is the sixth largest pork processor in the U.S.

Premium Standard Farms, Inc. announced today its board of directors has approved a plan to expand the capacity of the company's Milan, Missouri hog processing plant by 35%.

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