Agri Star CEO says plant has bright future
By Jean Caspers-Simmet
simmet@agrinews.com
Date Modified: 09/09/2010 9:24 AM
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POSTVILLE, Iowa —Hershey Friedman, CEO of Agri Star Meat and Poultry in Postville, told Iowa Cattlemen's Association members that the kosher packing plant continues to expand its beef line. Production is currently at 200 head of cattle per day. Numbers will expand 10 percent this week and another 10 percent next week.
"My goal is 500 head by the end of the year," Friedman said in an interview last week after speaking at ICA's northeast Iowa regional meeting at the Postville YMCA. John Doyle, head of non-kosher beef sales at the plant, also met with producers.
Friedman bought the former Agriprocessors plant out of bankruptcy a little over a year ago. His goal is to process 1,000 head of cattle per day within a couple of years. The plant currently employs more than 600, and jobs will grow as the beef line expands.
"I am not from Iowa and I did not grow up on a farm, but I know the importance of a hard day's work and treating people with respect and integrity," Friedman said.
Friedman said he invested in Agri Processors because Iowa has better beef than any other area of the country and probably the world.
"Demand for high quality beef is very high especially in the kosher market," Friedman said. "In the past couple of years, kosher consumers had to turn to lower quality products because that is all that was available to them."
Friedman said he has been involved in business turn-around situations for most of his life, and he knew that Agri Star would be a challenge.
"But ultimately demand was there for high-quality products, especially the beef, and I knew in my heart this was a challenge worth accepting," Friedman said. "I'm very proud of our progress and very pleased with the support we've had from the community and the mayor of Postville. The Iowa Secretary of Agriculture and the USDA have been very helpful, and the support and understanding of the Iowa Cattlemen are appreciated."
The chicken line started first. In February turkey operations started and now the focus is on beef. Agri Star has invested $10 million modernizing the beef operation.
Doyle, who has 42 years experience in the meat industry, said his goal is to sell based on production and not sell inventory.
"I didn't know if we'd be able to do that, but thanks to the quality beef we have, everything I sell is based on production that we will produce next week," Doyle said.
Agri Star distributes in the Midwest, in the Chicago area, New York, New Jersey, Florida and California. Non-kosher product is marketed as Iowa's Best Beef.
"Even though we kill less than 0.2 percent of all the beef killed in the United States, the reputation we and Iowa have for high quality corn-fed beef makes a huge splash," Doyle said.
Doyle and the cattle buyers focus on building relationships with producers and consumers.
Agri Star's cattle buyers purchase within a 100-mile radius of the plant going direct to farms, sale barns and auction markets.