031221 Iowa Premium Pork Buys Meat Plant

Iowa Premium Pork Company has bought a meat processing plant in Hartley, Iowa from PM Beef Holdings, LLC. The company intends to use the plant to further process pork through its subsidiary, Majestic Food Group, LLC. Production at the Hartley plant is scheduled to begin in August with about 200 employees.

IPPC will mail a Disclosure Statement containing a description of the project to members later this month, and will make copies available to other pork producers who request it. Midwest pork producers will have a chance to invest in the project until April 1, 2004.

Majestic plans to contract with existing packers to process its live hogs into carcasses, and ship the carcasses to the Hartley facility for further processing. Majestic's target markets will be retail food store chains and food service companies.

Pork producers who invest in this project will also sign a Marketing Agreement requiring them to deliver one hog per year for each share purchased through 2008. Majestic will buy these hogs for a portion of the wholesale value of their meat.

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