Smithfield Foods Advances $1.3 Billion Pork Plant Plan

The company intends to reapply for a permit after a court order stalled its development project in Sioux Falls.

Updated on Oct. 28, 2026 in Agriculture

Smithfield Foods Advances $1.3 Billion Pork Plant Plan

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Smithfield Foods plans to continue its $1.3 billion pork plant project in Sioux Falls despite a South Dakota Circuit Court judge ordering the city to reconsider the facility's conditional use permit on October 1, 2026. The judge directed the city to re-evaluate the permit after finding the council failed to hold required neighborhood meetings regarding residential buffer zones.

Why it matters

This development marks a significant hurdle for Smithfield as it seeks to replace its existing downtown plant with a massive new facility in Foundation Park. The legal challenge highlights the tension between industrial growth and city ordinance requirements regarding residential land use.

The proposed 1.1 million-square-foot facility at the 211-acre Foundation Park site carries a $1.3 billion price tag. Smithfield expects full-year 2026 capital expenditures to exceed $350 million.

The players

Smithfield Foods

This food industry corporation is one of the world's largest pork processors and manages extensive agricultural operations.

Sioux Falls City Council

This local government body is responsible for municipal planning and the issuance of conditional use permits for industrial developments.

The details

The current downtown plant employs more than 3,000 people and serves as a major regional economic hub. Smithfield intends to rectify the procedural failures identified by the court and proceed with the new site construction.

Smithfield announced the Sioux Falls project in February 2026.
Site work for the project began in the spring of 2026.
A judge ordered the city to reconsider the permit on October 1, 2026.
The company plans to break ground on the new plant in 2027.
Operations are scheduled to begin by the end of 2028.

Market Landscape

The project follows a pattern set by Sioux Falls zoning ordinance requirements for residential buffer zones regarding industrial development. The court order marks a departure from typical permitting approvals by strictly enforcing municipal procedural mandates.

The potential relocation of the plant could impact the local job market for the more than 3,000 employees currently working downtown. Residents near the proposed Foundation Park site may see further public hearings regarding residential buffer zones.

The takeaway

Large-scale industrial projects must strictly adhere to city procedural requirements to avoid costly legal delays. Residents can monitor future city council agendas to see when the project's conditional use permit will be reconsidered.