Burnsville-based Valley Natural Foods has announced that it would invest $2m to open a wholesale meat processing plant in Northfield, Minnesota.
The company has purchased 16 acres of land, including a building, for the new plant, Valley Natural Meats.
It plans to retrofit the building to meet the growing demand of livestock producers and serve the requirements of family farms in 10 Southern Minnesota counties.
Valley Natural Meats, a subsidiary of Valley Natural Foods, will feature a 4,400sq2 MDA- and organic-certified meat processing plant and 4,000sq2 holding barn.
The facility will also produce specialty and smoked and cured meats, jerky, hams and sausages for wholesale and retail customers.
The company has also obtained permission to add two 30x70-foot, hoop-type buildings for growing plants, herbs and flowers in the future.
Valley Natural Meats CEO Jason Harstad said: "Our new processing facility will be different from most smaller, niche plants in that it will process naturally and humanely raised, grass and organic-grain fed, locally produced meats, and will be one of a few certified, organic multi-species beef and meat processors in the entire state."
The plant is expected to commence operations later this year, with a processing capacity of approximately 25 head per day, including cattle and hogs.
The construction of the plant is expected to completed and operational in November 2016.
The second phase operations planned for next year include obtaining USDA-certification to sell the products outside of Minnesota and the processing of lamb and goats.
Harstad added: "In Minnesota, particularly the South Central and Southwestern areas of the state, direct-market producers are faced with a lack of local processing capacity. This requires farmers to reserve processing time up to six months in advance, often resulting in the animals being 'past prime' for processing, and causing instability of supplying their retail/wholesale channels."
"In addition, longer transport distances to processing facilities increases cost to the producers and can affect the health and quality of the animals. Given these conditions, we believe Valley Natural Meats can share and effectively manage the organic, natural market."