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Hastings processing plant continues workers' furlough
By Robert Pore
robert.pore@theindependent.com
HASTINGS -- What was to be a two-week furlough for workers at the Premium Protein Products plant in Hastings and Lincoln has now been extended through July 15.
According to The Associated Press, workers at Premium Protein Products went on furlough June 11 and were told they would be back at work on June 25. The furlough now has been extended to July 15.
The company is headquartered in Lincoln and operates a slaughter and processing plant in Hastings.
Beef industry difficulties due to the global economy, higher feed costs, weakening demand and other problems led to workers at the two plants being furloughed.
Last month, Premium Protein Products furloughed about 250 workers in Hastings and 60 in Lincoln.
The company's Hastings plant operates a source-verified beef kill and cutting facility with a yearly slaughter capacity of 150,000 head, according to the company's Web site at www.premiumproteinproducts.com. The plant has been approved for sales to export markets.
The Lincoln plant is a processing facility with an annual capacity of $100 million in sales. According to the company's Web site, the Lincoln plant produces fresh and frozen ground beef products, both hand- and machine-cut steaks, dry-aged beef products, cooked chicken products and Philly steak products.
Premium Protein Products is one of Hastings' larger employers. The beef packing facility was built in 1964. It was sold to Premium Protein Products in 2003 by Lovett & Sons Inc.
Under Premium Protein Products ownership, the company expanded its operations by adding 30,000 square feet to the facility, along with increasing employment.
In an effort to reverse slumping beef sales to help plants, such as Premium Protein, Nebraska corn and beef producers recently returned from a promotion trip to Japan and South Korea.
The mission was organized by the U.S. Meat Export Federation (USMEF).
"It is important for corn growers to support beef producers as they develop and expand markets," said Mark Jagels, a member of the Nebraska Corn Board and a farmer from Davenport. "We're on this mission to do that and to put a face on agriculture for important customers in Japan and South Korea."
Jagels was joined on the mission by Nebraskans Alan Tiemann, a Nebraska Corn Board member and farmer from Seward, and David Hamilton, a Nebraska Beef Council member and farmer from Thedford. Three farmers from Iowa were also on the trade mission.
The group met with Japanese meat buyers, manufacturers and retailers.
"As corn producers, we realize that the livestock industry is our No. 1 customer and that we need to be supportive of beef exports," Tiemann said. "That's something we have really set our minds to in Nebraska -- understanding our largest customers' needs and working together to move our industries forward."
One of the problems facing Premium Protein Products and other beef processing companies that ship products overseas is that currently beef shipped to Japan must come from cattle 20 months old or younger.
Jagels said if that age limit could be raised to follow the 30-month rule that is more standardized, it would help U.S. beef producers reach their full market potential in that country.
"When we visited with the importers, grocers and meat buyers here in Japan, they were all in support of a higher age limit," Tiemann said. "They could definitely utilize more U.S. beef if we are able to get that, so we're hopeful that our governments will move this issue forward soon and then we'll really be able to open up this export market."
Jagels said Japan and South Korea are very important trading partners for the United States.
"We also need to remember that 95 percent of the world's population resides outside the United States," he said. "We need to be visible in these markets to sustain and grow U.S. and Nebraska beef demand. Every ton of beef we export represents about 1.5 acres of corn and the equivalent corn co-product like distillers grains, which comes from ethanol facilities. Exports are vital."
According to The Associated Press, workers at Premium Protein Products went on furlough June 11 and were told they would be back at work on June 25. The furlough now has been extended to July 15.
The company is headquartered in Lincoln and operates a slaughter and processing plant in Hastings.
Beef industry difficulties due to the global economy, higher feed costs, weakening demand and other problems led to workers at the two plants being furloughed.
The company's Hastings plant operates a source-verified beef kill and cutting facility with a yearly slaughter capacity of 150,000 head, according to the company's Web site at www.premiumproteinproducts.com. The plant has been approved for sales to export markets.
The Lincoln plant is a processing facility with an annual capacity of $100 million in sales. According to the company's Web site, the Lincoln plant produces fresh and frozen ground beef products, both hand- and machine-cut steaks, dry-aged beef products, cooked chicken products and Philly steak products.
Premium Protein Products is one of Hastings' larger employers. The beef packing facility was built in 1964. It was sold to Premium Protein Products in 2003 by Lovett & Sons Inc.
Under Premium Protein Products ownership, the company expanded its operations by adding 30,000 square feet to the facility, along with increasing employment.
In an effort to reverse slumping beef sales to help plants, such as Premium Protein, Nebraska corn and beef producers recently returned from a promotion trip to Japan and South Korea.
The mission was organized by the U.S. Meat Export Federation (USMEF).
"It is important for corn growers to support beef producers as they develop and expand markets," said Mark Jagels, a member of the Nebraska Corn Board and a farmer from Davenport. "We're on this mission to do that and to put a face on agriculture for important customers in Japan and South Korea."
Jagels was joined on the mission by Nebraskans Alan Tiemann, a Nebraska Corn Board member and farmer from Seward, and David Hamilton, a Nebraska Beef Council member and farmer from Thedford. Three farmers from Iowa were also on the trade mission.
The group met with Japanese meat buyers, manufacturers and retailers.
"As corn producers, we realize that the livestock industry is our No. 1 customer and that we need to be supportive of beef exports," Tiemann said. "That's something we have really set our minds to in Nebraska -- understanding our largest customers' needs and working together to move our industries forward."
One of the problems facing Premium Protein Products and other beef processing companies that ship products overseas is that currently beef shipped to Japan must come from cattle 20 months old or younger.
Jagels said if that age limit could be raised to follow the 30-month rule that is more standardized, it would help U.S. beef producers reach their full market potential in that country.
"When we visited with the importers, grocers and meat buyers here in Japan, they were all in support of a higher age limit," Tiemann said. "They could definitely utilize more U.S. beef if we are able to get that, so we're hopeful that our governments will move this issue forward soon and then we'll really be able to open up this export market."
Jagels said Japan and South Korea are very important trading partners for the United States.
"We also need to remember that 95 percent of the world's population resides outside the United States," he said. "We need to be visible in these markets to sustain and grow U.S. and Nebraska beef demand. Every ton of beef we export represents about 1.5 acres of corn and the equivalent corn co-product like distillers grains, which comes from ethanol facilities. Exports are vital."
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