JBS, one of the largest meat processors in the world, recently announced its plans to invest $100 million in acquiring and transforming a facility in Ankeny, Iowa into its largest bacon and sausage plant in the U.S. The 186,000-square-foot facility was previously owned by the grocery chain Hy-Vee, and JBS will make capital investments to enable the production of sausage and bacon by mid-2026.
This move is part of JBS’ strategy to meet the increasing demand for pork and chicken products, as consumers are turning to these options over pricier beef. The company has been expanding its production capacity in the U.S., with recent investments in both pork and chicken production. In addition to the Ankeny facility, JBS also announced plans to build a $135 million sausage plant in Perry, Iowa.
According to Wesley Mendonca Batista Filho, JBS’ chief operating officer, the investments in new facilities will significantly increase the company’s production capacity. He mentioned that the bottleneck for growth in the market is currently production capacity, rather than the ability to sell the products.
The shift towards pork and chicken products is also driven by a cattle shortage in the U.S., which has led to higher beef prices. JBS’ pork unit in the U.S. experienced a 5% decline in the previous year due to trade restrictions with China, but the business fundamentals remain strong. Batista highlighted that pork becomes a more attractive option for consumers when beef is less available and more expensive.
The Ankeny plant is expected to create around 400 jobs once all phases of the project are completed. JBS is also looking to hire former employees who previously worked at the facility for Hy-Vee. With this new investment, JBS aims to meet the growing demand for pork and chicken products in the U.S. market and strengthen its position as a leading meat processor.
