Smithfield Foods announced a $1.3 billion investment over the next three years to build a new state of the art packaged meat and fresh pork processing facility in Sioux Falls, South Dakota.
New Facility, New Location
Smithfield Food president and CEO Shane Smith says the plant will be located on the northwest edge of Sioux Falls in Foundation park and will replace their 115 year old downtown facility, which had become outdated.
He says the investment is contingent on securing the required permits and regulatory approvals, but the facility will be located at the intersection of two major interstates and provides rail access.
“The new facility will be the most modern of its kind in the U.S., featuring an advanced automation technology and IT systems. It will be the largest combined packaged meats and fresh pork processing facility in Smithfield’s network with more than 1.1 million square feet of production space and will deliver efficiency gains to Smithfield’s fresh pork and package meats operations.”
Smithfield Plant Packs Huge Economic Punch
Smith says this investment will have a huge economic impact on the region.
“We process more than 28 million hogs annually in the U.S. and 10,000 hog farms located in 30 states produce and raise the pigs that we harvest. The vast majority of the hogs that we process here in Sioux Falls are raised by independent hog producers in South Dakota and the surrounding states.”
Smithfield also purchases 130 million bushels of corn and wheat, and 1 million tons of soybean meal annually according to Smith. That accounts for almost 1% of the U.S. annual corn crop and 2% of the typical US soybean meal production.
Largest Business Investment in South Dakota History
South Dakota Governor Larry Rhoden says the Smithfield project marks the largest business investment in the state’s history. He says food production and processing plays a vital role in South Dakota’s economy.
“The existing Smithfield facility in Sioux Falls currently processes right at 20,000 hogs per day. The new facility will increase that number and that’s good news for South Dakota pork producers and the entire region. This project will expand our producers market reach and it will drive economic activity across the state of South Dakota. So, it’s a huge win for agriculture in South Dakota.”
One of Sioux Falls Biggest Employers
Sioux Falls Mayor Paul TenHaken adds that the plant employs over 3,200 skilled workers and generates a significant amount of economic activity for the city.
"$200 million in wages come out of this plant every year. And we could have easily lost this plant. I don’t want to just take for granted that it was assumed that Smithfield would stay here because it wasn’t.”
Smithfield Provides Important Market for Pork Producers
The state’s pork producers are also excited about the processing expansion, especially those delivering to the plant like Shane Odegaard, a pork producer, from Lake Preston, S.D.
“I have a really good relationship with my buyer on the farm and cultivating relationships to the point where I consider us real close friends today.”
Construction is scheduled to begin in the first half of 2027, with operations to start at the end of 2028.
