000348 IBP Exit From Cow Slaughter Business Complete

Chicago - IBP Inc said that it had completed its exit from the cow slaughter business by donating the last cow plant to a tax-exempt development corporation in Gibbon, Nebraska.

The plant, which had a daily slaughter capacity of 1,600 head, will be leased to a Fairmont, Minnesota meat company called Rosen's Diversified, said Gary Mickelson, IBP spokesman.

“The transfer of ownership, effective March 17, complete's IBP's exit from the cow slaughter business,” Mickelson said.

The plant employs 400 people and produces boneless beef cuts sold primarily to the food service industry to produce hamburger, sausage and deli meats.

IBP had operated four cow slaughter plants but started shedding the facilities two years ago when cow supplies dropped, he said.

“We closed them for economic reasons. Since 1996 there has been a 20% decline in U.S. cow slaughter,” Mickelson said.

IBP closed the Tama, Iowa cow plant in December 1999, the Palestine, Texas plant in April 1999 and Sealy, Texas plant in August, 1998.

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