Independent Idaho : A Series on the Beef Chain, Part 2

ARCHITECTURAL RENDITION OF TRUE WEST BEEF

IDAHO CATTLE ASSOCIATION in collaboration with Agri Beef

As we continue in our Independent Idaho series, we are looking at facets of the beef industry that set us apart from other states in the nation, as well as highlighting new additions to the value of being an Idaho producer. Part of this value is the availability of, and the access to, processing plants currently and soon to be online. One of these plants that is drawing particular interest in the Magic Valley, is the True West Beef plant which is part of the Agri Beef family. Jay Theiler, EVP of Corporate Affairs at Agri Beef, was able to give ICA an inside look and update on how the plant came to be, as well as what the beef community can expect going forward.

The True West Beef plant will be the newest beef processing facility in the United States when it opens for business sometime in early 2023. While there is no “official” opening date at this time, the project was first publicly announced in July of 2020 as a partnership between Boise based Agri Beef

Co. and livestock partners from around the region. The goal of the new plant is to provide more opportunity for local livestock producers and to keep as many cattle as possible in the region. The plant site is strategically located in Jerome, Idaho, approximately 7 miles north of the I-84 Exit 173 interchange (Twin Falls) off Hwy 93, and within a day’s reach of most major Metro markets in the West.

Agri Beef has long standing roots in the area and began as a cattle-feeding operation itself in American Falls in 1968. Today the company is structured with operations in each step of the beef supply chain including ranching, cattle feeding, beef processing (Washington Beef), animal nutrition (Performix Nutrition), and beef marketing and sales. The company was an early adopter of beef branding and market differentiation as a way to compete in a commodity dominated industry and they are now well recognized for producing high quality beef under brand names like Snake River Farms American Wagyu Beef and Double R Ranch Northwest Beef.

PROGRESS PHOTOS AT THE CONSTRUCTION SITE FOR TRUE WEST BEEF IN JEROME, ID

The True West Beef plant represents a new direction in the beef business by including livestock producers as equity partners in the beef production supply chain. The lack of processing capacity in Idaho, as well as hurdles made evident during the COVID bottlenecks, all served as motivators in the birth of the overall project. During the process of acquiring partners, it was important to Agri Beef that this endeavor have a mix across all sectors (eg. Cow-calf, backgrounder, feeders) in the Northwest- which was in order to ensure adequate supply across all seasons. Not only are these partners ‘owners’, but they are also suppliers to the new facility, and they will be vested in the overall success of True West Beef. It was also important to note that these partnerships were formed on the basis of a long-standing relationship with Agri Beef, as well as with those that have similar core values as Agri Beef. This approach has several advantages besides the obvious benefits of participating in the profit and loss of the processing plant and a diversification of risk. The owners hope this collaborative model will also meet growing consumer expectations for knowing where their beef comes from, by authenticating a high-quality ranch-to-brand market position and providing consumer preference information back to producer partners to continually improve the overall herd genetics, cattle health, marbling capability, etc. Agri Beef is a majority partner in the venture with over 50% ownership and they will provide managed services for the operation of the new facility.

Once the new plant is operational, the plan is to continue to build demand for the brands that the company has built over the years, as well as potentially build new brands, and to offer toll processing services to other producer groups with their own beef programs or brands. True West Beef will encompass over 200,000 sq feet and is designed to initially process 500 head per day. Once the project gets past the start-up phase, and once production number are achieved, there could be opportunities for additional expansion, but that will be up to the decision of the Partners and the overall economic conditions at that time. The plant is projected to provide over 350 jobs when at full employment, giving a boost to the economy of Jerome County and the Magic Valley area.

The company says it has already hired most of its management team, with a core group of those joining True West Beef with previous beef processing experience at Agri Beef’s

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Washington beef plant in Toppenish, WA. The company says it is planning a series of hiring fairs in the Magic Valley to begin hiring its production workforce in the next few months, and that no previous meat-packing experience will be necessary, as True West Beef plans to invest heavily in employee education and training.

When assessing the availability of packers in the state, it’s important to note that Idaho is fortunate to have an existing packer in the Boise area, CS Beef, which is a partnership between Caviness Beef Packers & Simplot. Additionally, there are plans in motion for Intermountain Beef to come online in Fall 2022 in Idaho Falls, as well as an additional plant in that area sometime in 2023. The addition of True West Beef, as well as other facilities noted, pack a serious punch of value towards a producer’s ability to keep their business in the state of Idaho for most, if not all, of the industry chain. Stay tuned for our finale, Part 3 of the series, where we will finish with a recap of our annual convention and tie together the details that make up the Idaho beef chain!

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