Postville, IA – Chicken production at Agriprocessors, the embattled kosher slaughterhouse in Postville, Iowa, is now up to 20,000 daily — about one-third its previous output — and beef production is expected to soon resume.
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“I have two experienced meat industry veterans operating the plant and all operational decisions are made under the trustee’s auspices,” said Joseph Sarachek, the company’s court-appointed trustee.
Agriprocessors filed for Chapter 11 bankruptcy protection in November. It ceased operations at about the same time, owing between $50 million and $100 million. Its assets at the time were estimated at between $100 million and $500 million.
Sarachek said chicken production resumed early last month and that “we are also placing eggs for the development of chickens in the future, and we are processing pastrami
and corned beef.”
Sarachek said plans call for the plant to begin slaughtering cattle again by Passover, which begins April 8, “and for that to happen we have to start well before then.”
Since chicken production resumed, Sarachek said kosher chicken prices have dropped “to a more reasonable level.”
Agriprocessors had had 40 percent of the kosher poultry market and 60 percent of the kosher meat market before it ran into legal problems.
Sarachek said Agriprocessors plans to process “as much glatt [meat] as possible” when it resumes production. He noted that glatt meat prices have risen 40 to 50 percent since Agriprocessors ceased production.
Cattle slaughtering will resume, Sarachek said, once the company is able to obtain another bank loan to be able to buy cattle.
“You have to pay cash,” he said, adding that the company is working with First Bank of St. Louis to obtain a new bank loan. It already has a $5 million loan from the bank.
Agriprocessors, which once employed 1,000 workers, now has a workforce of 300 primarily former employees and Sarachek said all comply with U.S. immigration laws.
Although there are members of the Rubashkin family at the Iowa plant, Sarachek said they are not in control of the operations. The Rubashkin family owns the plant and is hoping to find a buyer. It rejected a $50 million offer late last year and Sarachek said the Rubashkins are now “negotiating with multiple parties” who are also interested in buying it.
I will not buy from them again, unless they get a NEW hashgacha. The combination OU and MMW have lost my confidence.
Also, too many of their policies have been exposed now. As long as they butcher non-kosher in the same plant, I would not tough them.
Also, I would want to see plumbers on every chicken.
But, most importantly, I need to see mashgichim there who were not there before. Not ones who would sign off on MMW. He has no credibility left.
Good luck
Why would anyone buy from them if some of the Rubashkin mishpacha are still working in the plant…they need a clean break from the past if they want to be sucessful and restore confidence within the yiddeshe community…and please don’t tell me none of them knew what was going on. It strains credibility after all that has been disclosed in the indictments.
Good to see they are ramping back up. I hope news comes soon of a plant purchase; preferably by meat industry veterans who know regulatory regimens, labor relations and, most importantly, how to produce a consistent high quality product. This opportunity should be too good to pass up for someone who knows what they are doing.
Baruch Hashem! I will definitely continue to buy from them, and I am very confident with Rabbi Weissmandel’s hashgacha.
#1 , good points. Years ago, when my father OBM was in the kosher meat packing industry, each chicken would get a metal plumb placed by the maschgiach or the maschgiach’s helper, who was also an ehrlicher yid, and that meant he had personally watched the entire process and we could be confident both of the kashrus and the physical quality of the meat. Once upon a time, kashrus and quality meant the same thing. Nowadays? Oy vay.
Good to have them back. I’ve been paying from $1 – $3 more a pound for meat since the problems began in Iowa. We may even be able to afford meat for Pesach if they resume full production.
Why would anyone pay Rubashkin $50 million for this business whose reputation has come to stand for everything that is wrong with kashruth and yiddeshe business ethics? They should sell the machinery and demolish the facility and start over somewhere new.
Hopefully the price will drop in the stores.
Kosher processing always has a non-kosher line along side – it is too expensive to not process questionable product and most beef bottoms are worth more “untraibered” so it doesn’t pay to process them kosher.
may hashem help the rubashkins as they had helped so many over the years
i will buy from them.. support them and wish them the best of luck
The more competition the better for me the consumer. Hurry up Agri! Get crankin’
dont know what rock you live under but im paying 8 bux for rib steak and a buk69 for chicken bottoms. Why would anyone want to by from people who were and are still involved in heavy crimes with a long rap sheet going back ove r 15 years is beyond me. If you cant trust them in money dealings and bain adam lchaveroi then how can u trust them in kashrus .. Untill it is REALLY sold and MMW is no longer the kashrus certifier u will not see much coming out of there.
My mom just told me that the Kollel store is selling Agri for 1.49 an lb! I am so excited,, We have been paying 2.79 of late! Thank you Hashem for your benevolence.
#1 #3 and the like:
It’s hard to believe there are people like you in the midst of our precious,chosen, people. Yet,if Moshe Rabbeinu could have had”attackers,” anyone can. The comfort is, the torah principle according to the descent can be the ascent applies also to sold souls as yours. May Hashem help you do proper teshuvah.
To the bloodthirsty, revengeful, jealous souls: Your passion for “justice” matches those “lefties,” who are busy solicitating fund for the “poor arab children” in Gaza, in midst of the bombing of Saderot, Ashkelon, Ashdod,and Beer Sheva.
Is Rubashkin so guilty that the only defense you have is to hatefully call names, and insult those who have good reason to doubt them?
i will continue buying by them
Put away all the “Sheker and Dimun” that the media and etc. is feeding us. Enough of the higher of society bigots that teach us how to live, think, act, vote when their personal lifes are completly off balance and sincere intentions. I will buy Rubashkin, feel for them, just in such a society this could happen to such good people!
Sarachek isn’t being totally honest. Production is approximately 18,000 birds/day. The same it has been for some time. When he first started he claimed they would be doing 30,000/day. They can’t increase production becuase they can’t find anyone who will work there.
$50 Million is a dream number. That is what Sarachek would like to get for the place in order to satisfy creditors. He won’t get it. Real estate companies in Postville arn’t making life easier. The high rents are driving people away.