041031 Meatpacker May Reopen Iowa Plant

Tama, Iowa - Shareholders have been told that a major meatpacker may reopen the farmer-owned Iowa Quality Beef plant in Tama, which has been closed since August.

Gene Rouse, chief executive of Iowa Quality Beef Supply Cooperative, said the co-op has had discussions with three major meatpackers. He said the leading candidate is interested in the co-op's ability to provide cattle whose origins can be documented from the farm all the way through processing. Officials said the company would buy cattle on a grid basis, which pays premiums to farmers based on livestock quality.

Rouse and other top officials asked shareholders in the venture to continue to support the project, despite setbacks.

Rouse said losses total about $12 million, including more than $3 million lost when beef shipped to Asian markets was rejected after discovery of a mad cow case in the United States last December. They did not disclose the company that is considering running the plant or offer a timeline for reopening it.

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