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Illinois hog producer buys Nebraska swine facilities

By STEVE BINDER
Illinois Correspondent

CARLYLE, Ill. — Already one of the largest, family-owned swine producers in the U.S., a southern Illinois-based company will grow by about 35 percent by the end of March.

Officials with The Maschhoffs, Inc., in the Washington County community of Carlyle, have announced that the company reached a deal to purchase the livestock, equipment and facilities of the former Nebraska Pork Partners (NPP).
About 50,000 swine space facilities in Nebraska, Iowa and South Dakota are included in the agreement, stretching The Maschhoffs’ reach into 11 states.
The acquisition pushes the company’s holdings to nearly 200,000 sows on more than 120 farms throughout the Midwest.

Scott Burroughs, NPP’s chief operating officer, said the partnership is a natural fit.

“The fact that our two organizations have similar values and operating philosophies should make this a smooth transition for our employees and customers,” Burroughs said.

Current Maschhoffs CEO, Ken Maschhoff, said the agreement made logical sense for his family’s company.

“We view this as a very attractive growth opportunity,” Ken Maschhoff said. “NPP is well-known for its strong production performance and, like us, its intense focus on animal care and husbandry.

“We are excited about entering Nebraska and look forward to becoming a good neighbor and valuable part of the rural Nebraska communities surrounding these operations,” he said.

Maschhoff and Burroughs said they expect the deal, which is subject to regulatory approval, to be completed by the end of the first quarter of this year.

The Maschhoffs have been family farmers in the Carlyle area since the mid-1800s, but it wasn’t until the 1950s when Ken Maschhoff’s father, Wayne, took steps toward building a foundation for a large hog operation.
Ken and brother, Dave, both graduated from Southern Illinois University – Carbondale and in the late 1970s helped accelerate the family business of producing hogs.

The company entered the contract farming arena in 1996 and its production numbers soared.

It is known for its closed-herd system that produces its own replacement females. The risk of disease is reduced, the herd’s health is improved, and the death rate is lowered.

The company employs nearly 600 people and had sales totaling about $3.5 billion in 2008.

Ken’s wife, Julie, heads up public relations for The Maschhoffs.
“We have a niche. We know how to raise hogs and we’ve done that very well,” she said.

2/9/2011