Beef Plant Proposed for Jasper County
Published: Friday, March 4, 2022
A financial planner with a soft heart for farmers is leading an effort to bring a beef processing venture to northwestern Indiana.
Nelson Schoon, who runs his own financial consulting business in Valparaiso, wants to build a small beef processing plant near DeMotte in Jasper County. He said Project Ribeye, as it is known, is gaining traction and could gain a key zoning approval next Monday.
If given the thumbs up by county commissioners, the plant would have the capacity to process up to 100 cattle per week and provide a market for small farms that specialize in selling freezer beef. The business would also have a retail aspect and would buy 4-H steers from county fairs in a six-county region.
Schoon has done a lot of preliminary work to ensure success. That includes a feasibility study and business plan. He also has support from key players, including Indiana State Department of Agriculture, Indiana Meat Packers and Processors Assn. and the Indiana Beef Cattle Assn. Purdue University is providing training with meat processing.
"This train is moving fast down the tracks," Schoon said. "We currently have no less than 28 people helping us, and that excites me. Every time we run into a potential hurdle, obstacle or speed bump, somebody steps up and says, 'Oh I can solve that for you.'"
Schoon grew up showing Shorthorn steers in 4-H. He and his wife raised four daughters who were 4-H members. Although the daughters are all grown, the family continues to go to the Porter County 4-H auction every year and buy animals to stock their freezer. As Nelson said, farming "may not be in my blood, but it's certainly under my fingernails."
For the past 38 years, Schoon has worked as a financial and estate planner. During his interactions with clients, some of whom are farmers, he came to realize that many family farms are disappearing from the landscape. One of the reasons they leave the industry is a lack of market access.
"I got contacted by an existing meat processing plant, asking me to help them find an exit," Schoon said. "And in doing my due diligence with them, I discovered the huge need that existed and that the small meat processors could not keep up with the demand. So, I did more research and talked to meat processors in Minnesota and Iowa, and I've been in discussions with the Indiana (State) Department of Agriculture, Purdue's Animal Sciences Department, the (Indiana State) Board of Animal Health. I have been doing my research to find out if this is something worth pursuing."
What he found out is that not only is a growing market for a regional beef processor in Indiana, but there is considerable enthusiasm for it.
"This plant is of the size that will impact 200 to 300 farmers," he said. "We will impact 4-H'ers in probably six counties so they can sell their livestock at the 4-H auctions."
The proposed Jasper County plant is small compared to the size of processing facilities run by the big four meatpackers who slaughter eighty percent of the cattle in the U.S. However, at 100 steers a week, and up to 125 during the busy 4-H season, the DeMotte facility would be the second largest beef plant in Indiana, based on volume.
Most of the processing plants in the Hoosier state handle anywhere between 10 and 40 animals per week, according to Schoon.
Schoon said there is a plant in southern Indiana that is expanding and will be able to handle 150 steers a week, once the expansion is complete.
One concern in starting a new business is finding enough workers to keep the lines moving. Schoon says he plans to hire 30 employees and pay above average wages and full benefits.
To get the ball rolling, Schoon has been working with the Small Business Development Center in Crown Point and with Jasper County economic development officials. The reaction he has received from them, and others, has been enthusiastic. They've told him: "You can't get this done soon enough, Nelson."
In January, at a regional meeting in Plymouth, Schoon shared plans for Project Ribeye with area cattlemen. He said many were astonished.
"All their jaws dropped to the floor," he said.
As he explained the project in greater detail, he saw many cattlemen smiling. They began asking questions like, "Can I bring my cattle tomorrow?" "How soon are you going to open?"
For 45 minutes, he fielded questions from beef producers wanting more information.
Schoon says he is now ready to answer more questions, and will do so during a meeting at 7 p.m. on March 22 at the Jasper County Fairgrounds in Rensselaer. All area cattlemen and 4-H'ers are invited to attend.
"We want to give them a heads up, so that if they do want to expand, or they stay in the business, they know what the time frame is," Schoon said, adding that it takes two years to raise a beef calf to a finished weight.
The latest good news for Project Ribeye occurred on Monday, when the Jasper County plan commission voted to approve the zoning change from agricultural to industrial. The site is located three miles east of I-65, along S.R. 10, south of DeMotte. Schoon said the area is serviced by sewer and water lines.
The plan commission's unanimous vote sends the matter to the county commissioners for final consideration. Their vote is scheduled to take place next Monday.
Schoon is also working with 14 environmental agencies to win their separate approvals.
The facility, he said, will be "the cleanest place for beef processing in the state."
Project Ribeye will perform custom processing for local farmers and feedlots. That segment of the business will represent 75 percent of the income stream, Schoon said. The other 25 percent will come from a retail store that will be selling individual cuts of meat.
In addition to beef, Schoon intends to process up to 20 hogs per week. He also plans to sell processed chickens and turkeys during the holiday season.
Schoon said he hopes this new business will ease some of the backlog of beef cattle waiting to be processed.
"We wanted to impact as many farm families as we can," he said. "We want to deal with those who have five, 10 and 20 animals —those who are trying to find a place (for their animals to be processed), and they've got customers who buy freezer beef from them. But they have no place to go. And that's the people we want to impact. The more of those, the better."
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