By A.J. Kaufman, Managing Editor
More than three years after the concept originated when Washington County, Tenn. Commissioners approved $2 million to develop a Tri-Cities based meat processing plant for local livestock farmers, the Appalachian Producers Cooperative (APC) officially held their grand opening on July 17.
More than 100 people — cattlemen, politicians, chambers of commerce personnel, businessmen, media, children, community members and more — attended the celebration on a warm morning. The plant is a public/private partnership with funds from federal, state, local and private sources.
Various speakers opened the event. Many complimented Tennessee Gov. Bill Lee, a cattle farmer himself, who visited the facility earlier this summer.
Andy Holt, Tennessee Department of Agriculture deputy commissioner, claimed Lee is “the most pro-agriculture governor that we’ve had in a long, long time.” Holt claimed that unless money is applied to a cause or industry, it’s “just lip service.”
The Lee Administration contributed $2 million in state agriculture grants for the $12.9 million project.
“We have a great thing here, and now it’s time to spread the news,” State Rep. Rebecca Alexander, whose district covers Washington County, said, and added that this facility is a dream of hers that came true. “Everyone came together.”
After a soft opening in May, the USDA inspection and approval occurred June 23.
The APC operation is off U.S. Highway 11 E in Telford and can employ up to 24 people. Any beef processed at the plant will be sold in nearby stores and to restaurants. The facility is estimated to be 16,900 square feet on nearly 7 acres of land.
The first producer-owned and operated processing plant within the region in over a half century solves logistical and financial pitfalls. Leaders long believed the plant was necessary, considering nearly 95% of cattle born in Tennessee are sold as calves at commodity prices to the Midwest. The remaining percentage had been processed at small regional facilities, outside Northeast Tennessee.
This predicament causes farmers to lose out on potential profits, while Tri-Cities consumers are not eating meat raised in their area. Additional delays caused local livestock owners to often wait more than a year for their products to be processed.
The new meat processing plant will reduce waiting time since there will be no middlemen between the people raising cattle and folks who want to purchase high quality local meat.
Washington County Mayor Joe Grandy harkened back to the COVID-19 pandemic as the genesis for this effort.
“It was extremely disruptive to the supply chain, including food,” he explained. “We looked at how we can be more self-sufficient, in an agricultural community, in our food chain.”
Grandy noted the American Rescue Plan Act provided an “unusual windfall” of funding for Washington County.
“It was important to me that we utilized this one-time gift for the long-term benefit of the county and citizens of the region,” the mayor said. “And so, we pulled together as a group of community leaders to begin to work through the thought process.”
One community leader Grandy mentioned was John Abe Teague, a farmer who sits on the APC board of directors.
“I’m excited about getting the farmer an opportunity to get the meat harvested here and food security…for our region,” Teague told the Business Journal after the event. “These farmers have to depend on somebody else making the decisions on what price they get for meat…and then sell it to us. The APC will instead pay them a very fair price, and we in turn buy local.”
The genesis to spark the APC’s construction was a 2016 University of Tennessee feasibility study to determine the need for processing facilities across the Volunteer State. The research found a dire need in East Tennessee, specifically the Appalachian Highlands.
“This is meeting a need for Washington County farmers and people across the region,” Adam Watson, with University of Tennessee’s Extension – Washington County, told the Business Journal.
Mark Zinnanti has been APC project’s general manager since the onset, oversaw the grand opening ceremony and facilitated guided tours.
“APC appreciates very much all those who attended our grand opening celebration,” he wrote to the Business Journal via email. “We continue to look forward to meeting farmers, producers and community members who support our project, and we want to earn the trust of each person we serve through our business.”
