Iowa Agricultural Finance Corporation's tecTERRA Food Capital Fund announces an investment in Sioux-Preme Packing Co. (Sioux Center, IA). According to a spokesperson at Cybus Capital, investment manager for tecTERRA, this equity investment will allow Sioux-Preme to continue to grow its operation in and commitment to custom slaughter, fabrication and processing in the specialty pork sector. Terms of the transaction were not disclosed.

Sioux-Preme Packing is a leading processor and supplier of specialty pork products to high-end consumer and foodservice markets. With operations in Sioux City and Sioux Center, IA, Sioux-Preme employs 240 people and processes more than 700,000 hogs per year. Sioux-Preme maintains above average earnings and creates valuable links for selected Iowa producers through custom processing and packaging to higher margin specialty retail and consumer markets.

"This deal is precisely what the legislature had in mind when tecTERRA was conceived. It keeps an important pork processor and marketer Iowa-owned and includes producers as owners to share in future growth," said Duane Acker, Chairman of the Iowa Agricultural Finance Corporation (IAFC), a co-general partner with Cybus of the tecTERRA Fund. "IAFC's investment includes an ownership stake in Sioux-Preme for key Iowa producers, encouraging their expansion of supply relationships with Sioux-Preme and enabling them to share in the Sioux-Preme's future growth."

"We have been, and continue to be, successful because we serve two markets, those producing specialty hogs and those demanding specialty pork," said Ken Mouw, CEO of Sioux-Preme. "A significant portion of the US market and export markets are demanding better than 'average quality pork' and we will continue to satisfy that growing demand."

The IAFC is a farmer-owned investor in value-added agricultural processors with an Iowa connection, especially ventures involving agricultural producers in ownership or other benefits of growth. IAFC was started with a $25 million loan from the state of Iowa. IAFC created the tecTERRA Food Capital Fund to invest in value-added processing and biotechnology businesses targeted by the State for growth as part of the Food Capital of the World vision.

The tecTERRA Food Capital Fund is a unique blend of public and private capital providing growth capital for value-added agricultural processors and biotechnology. The Fund's first portfolio company is Rudi's Bakery (Boulder, CO), now building the first commercial, organic bakery in North Liberty, IA. The Fund is dedicated to investing in high-growth, consumer driven, food processing businesses for the benefit of both agricultural producers and equity stakeholders.

Cybus Capital Markets is a leading Midwest merchant-banking firm with a focus on the food chain, value-added agriculture and complementary industries. Headquartered in Des Moines, the firm maintains offices in Denver, CO and Sacramento, CA.