A global food production company announced today plans to invest $135 million in a new sausage production factory and bring 500 jobs to Perry roughly a year after the town’s Tyson plant shut down, laying off 1,300 people.

The company is JBS S.A., which is headquartered in Brazil and describes itself as the largest meat processing company in the world. Its subsidiary, JBS USA, is headquartered in Greeley, Colo., and produces meat and poultry products for many brands, including Just Bare, Swift, Pilgrim’s and Gold’n Plump.

Project awaits city, state approvals
The Perry project is still under consideration and needs to pass a few hurdles before it becomes official, said Rachel Wacker, executive director at the Greater Dallas County Development Alliance.

“Perry has been selected as the community of choice for this new sausage production facility that JBS is doing,” she said. “This is still pending city review and state approval, as well.”

The land selected for the project is south and east of Perry’s designated industrial park. The parcel is open land zoned agricultural and will need to be rezoned to industrial to continue. Next, the project will be considered for the state’s High Quality Jobs program and other grants and incentives through the city and state, Wacker said.

Basic infrastructure such as water, sewer and electrical will need to be connected to the undeveloped site. Wacker said the city can quickly turn around infrastructure projects like that to meet the needs of developers.

“We’ll meet [that request] the same day if we have to,” she said. “It depends on who the company brings in to help them with their site selection efforts and how much time they need. I know JBS has been looking for a place to put this project, and we’ve been talking to them since last fall. We will go at their pace, and the city and the state will try to match that as best as they can.”

Construction is expected to begin at the end of this year with a late 2026 completion date, creating an estimated 250 local construction jobs. JBS expects the facility will begin with one shift and 250 team members, with plans to double the workforce and operate two shifts in the future, according to the announcement.

If JBS moves into Perry, it would extend its Hometown Strong and Better Futures programs, which invests in community projects like new community centers, affordable housing, school improvements and child care enhancements. The program also provides free community college tuition for team members and their children.

Perry Mayor Dirk Cavanaugh said the facility would have a positive effect on the local economy and workforce.

“This is a potential game-changer for Perry,” Cavanaugh said in a news release. “JBS USA’s intentions to invest here reflects the resilience and promise of our community. This facility will not only create good-paying jobs but also provide long-term benefits for our schools, infrastructure, and local businesses. We’re looking forward to JBS USA sharing more about their plans for Perry and to building a brighter future together.”

Diversifying manufacturing in Perry
The proposed JBS project is much smaller than the size of Tyson’s former Perry operation, and that’s a good thing, Wacker said.

“It’s actually a fraction of what Tyson was, which is, to be quite honest, very appealing to all of us,” she said. “[Tyson was] 1,400 individuals in one building doing one type of work. That’s a pretty big liability in a community, and we experienced that last year. So when we get a company like JBS, who wants to build new and make a state-of-the-art facility and diversify the skill sets within the building, it makes the economy for Perry, for the county, for the region, the state, a little more diverse, which, in volatile times like we’re experiencing right now, is [a] responsible [economic development strategy].”

There are still many former Tyson workers living in Dallas County, and JBS could benefit from their institutional knowledge, Wacker said. It’s also a boon for those workers, who will be able to upskill at JBS’ modern facility.

“This investment underscores our commitment to rural America and our confidence in the strength of the U.S. market,” JBS USA CEO Wesley Batista Filho, said in the release. “We plan to be a long-term partner for Perry and, if approved by the community, the facility will help foster job creation and economic stability in the region.”

Aaron Juergens, president of the Iowa Pork Producers Association, said that the Perry project could be beneficial to pork producers in the state. If approved, JBS expects its Perry facility to process 500,000 sows annually to produce 130 million pounds of sausage.

“It strengthens our state’s leadership in pork production, creates new opportunities for pork producers, and supports the rural communities that are the backbone of Iowa agriculture,” he said in the release.

JBS USA operates several other facilities in Iowa, including in Council Bluffs, Marshalltown, Oakville and Ottumwa. According to the Iowa Department of Natural Resources, JBS USA has 40 processing facilities across the country and in 2020 pulled in $50 billion in sales with 230,000 workers. Its Marshalltown facility processes more than 21,000 heads per day with more than 2,000 employees.

Past coverage: Tyson closure reflects the tight labor market