Future Beef denies Chapter 11 rumours
Rumours that Future Beef Operations (FB0) has filed for Chapter 11 bankruptcy protection have been denied by sources close to the US company. However, teething problems at the Arkansas City plant have cast a shadow over plans to build several more facilities based on its integrated design.
The US beef industry’s newest packer/ processor was set up in August 2001 and is now said to be undergoing restructuring. The high cost of developing the plant (more than $100 million) coupled with the simultaneous downturn in the US economy increased the pressure on the cutting-edge project.
Seen as a model for the industry, FBO is a state-of-the-art beef plant which includes slaughter, meat packing, the production of cooked meats, pet treats and tanning. The facility also provides both the beginning and the end of a horizontally integrated process, where every aspect of the beef and leather production chain is carefully managed to achieve maximum quality.
The facility’s tannery also benefited from high levels of investment, with extensive use made of software control systems and the very latest tanning technology. The system has been designed to get the hide from the animal to the tannery in a matter of seconds, and the processes used result in a higher proportion of top grades than is usual.
