Sioux Falls, South Dakota – In a move hailed as a historic investment for the state, Smithfield Foods announced that it will construct a new, state-of-the-art processing facility northwest of the city, relocating from its long-held site near Falls Park. The announcement, made jointly by Governor Larry Rhoden, Sioux Falls Mayor Paul TenHaken, and Smithfield CEO Shane Smith, signals a significant shift for the 115-year-old pork production plant and promises a substantial economic impact for South Dakota.
The decision to relocate comes after more than a century at the Falls Park location, which originally opened in as John Morrell and Co. Before being acquired by Smithfield in . The new facility will be built adjacent to the Amazon packaging facility at Foundation Park, with construction slated to begin in the first half of and operations expected to commence in .
Governor Rhoden characterized the investment as the largest in the state’s history, emphasizing the importance of agriculture to South Dakota’s economy. Ag is king in South Dakota,
he stated, When ag succeeds, our whole economy succeeds. This is a huge win for agriculture.
The governor’s comments underscore the central role agriculture plays in the state’s economic identity and the potential for growth linked to the pork industry.
Smithfield CEO Shane Smith described the move as a generational, win-win solution
, suggesting a long-term commitment to the region and a strategic investment in the company’s future. The relocation allows for modernization of operations and positions Smithfield to capitalize on evolving market demands.
Smithfield Foods, owned by Chinese-based WH Group and headquartered in Virginia, is the world’s largest pork producer, with a global portfolio of brands including Eckrich, Farmer John, Kretschmar, Curly’s, and Nathan’s Famous. The company recently announced the acquisition of all issued and outstanding shares of Nathan’s Famous for $450 million, a move that further consolidates its position in the packaged meat industry.
The move is expected to maintain thousands of jobs within the state, a key consideration for both the company and state officials. The existing Sioux Falls plant employs a significant workforce, and the relocation plan aims to preserve these jobs while creating opportunities for future growth. The economic benefits extend beyond direct employment, encompassing the broader supply chain and related industries.
The future of the current 80-acre site near Falls Park remains a subject of discussion. The relocation opens the door for potential redevelopment of the prime real estate, offering opportunities for urban renewal and diversification of the city’s economic base. Local officials have indicated that the area’s transformation will be a defining moment for Sioux Falls
, suggesting a comprehensive plan for its future use.
The announcement comes as the agricultural sector faces increasing scrutiny regarding environmental sustainability and animal welfare. While the details of the new facility’s environmental impact assessment have not been publicly released, the construction of a modern processing plant offers the potential for incorporating advanced technologies and practices aimed at reducing the company’s environmental footprint. The industry as a whole is under pressure to address concerns related to greenhouse gas emissions, water usage, and waste management.
The investment by Smithfield Foods also reflects broader trends in the global food industry, including the consolidation of major players and the increasing demand for protein, particularly in emerging markets. The company’s strategic positioning in South Dakota allows it to efficiently serve both domestic and international customers.
Governor Rhoden highlighted the significance of the announcement on social media, stating that it represents a historic investment in Sioux Falls and in South Dakota agriculture
. This sentiment underscores the state’s commitment to fostering a favorable business environment and attracting investment in key sectors of its economy.
The relocation of Smithfield Foods marks a pivotal moment for Sioux Falls and South Dakota, promising economic growth, job preservation, and opportunities for urban redevelopment. The long-term implications of this investment will be closely watched by industry stakeholders, policymakers, and the local community as the project progresses.
