Improvements create opportunity to contract with independent producers; 50 new jobs in Milan Premium Standard Farms (PSF) is expanding the company’s Milan hog processing facility. The move will increase daily processing capacity by 35 percent to 10,000 head – an increase of 2,600 per day.
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The move creates the opportunity for PSF to purchase hogs from independent producers who can meet the company’s Processed Verified Program standards. "This is a great opportunity for Missouri pork producers," said Don Nikodim of the Missouri Pork Association. "This is a brand new market for Missouri hogs. Our producers who can meet the Processed Verified criteria will now be able to sell their hogs closer to home. This is a great way to start the New Year." PSF operates a similar integrated model on the East coast. At the company’s processing facility in North Carolina, approximately 25 percent of the hogs come from independent producers who are Process Verified. Increased productivity at PSF’s existing north Missouri farms will fill a portion of the additional capacity. The potential also exists for hogs to come from the company’s farms in the Texas panhandle. There are no plans for PSF to build new sow farms to meet the demand for more hogs. The $23 million construction project is scheduled to begin this spring and take one year to complete. The expansion will create the need for approximately 50 additional employees, meaning an increase of $1.5 million to the company’s current $68 million payroll in north Missouri. "New jobs and increased tax base are vital to the growth of rural communities," said John Meyer, chief executive officer at PSF. "We’ve enjoyed a great partnership with Milan and surrounding communities. We’re proud of the role we play in the north Missouri economy and look forward to providing more opportunity." The additional capacity at the Milan plant will allow the company to meet the increase in demand for Premium Standard Farms pork in the United States as well as in export markets. PSF is one of the largest vertically integrated providers of pork products in the United States, producing consistent, high quality pork products for the retail, wholesale, foodservice, export, and further processor markets. PSF is the nation’s second largest pork producer and sixth largest pork processor, with approximately 4,100 employees working at farms and processing facilities in Missouri, North Carolina, and Texas.