—Facility was once the largest in the U.S.

The Central Livestock Association (CLA), owner of the historic South Saint Paul Stockyards, recently announced that the facility will close its doors after one final feeder cattle sale on April 11, 2008. CLA plans to commemorate the event with a celebration honoring the truckers and patrons who have helped keep the facility operating for so long.

Founded as the South Saint Paul Union Stockyards Company in 1886, the stockyards have weathered a number of drastic changes in the livestock industry since the initial opening. The land was developed primarily for the feeding and yarding of livestock en route to slaughter, as well as providing adjacent lands for the operations of private packing houses and for the offices of livestock commission firms.

According to the Minnesota Historical Society, the chief organizers were most likely Alpheus B. Stickney, president of the Chicago Great Western Railroad, and Constantine W. Benson, head of C. W. Benson and Company, a St. Paul foreign investment firm. The stockyard company issued $1 million in capital stock and $2 million in mortgage bonds to fund the construction of the yards, which were developed on 260 acres along the Mississippi River, just three miles south of St. Paul.

Records show the stockyards operated at a substantial loss until 1897 when Swift and Company purchased the packing plant located within the yards. Swift subsequently acquired a half-interest in the stockyards company, which was absolved of its debt in 1916.

CLA, which purchased the stockyards in 1999, has been planning to transition its business out of the yards for several years as the makeup of the local livestock industry changes—and disappears.

“Volumes at the CLA market in South St. Paul have dropped because there’s no longer any livestock being raised in the area,” says COO Jeff Reed. “South St. Paul is now surrounded by suburbs of the Twin Cities. You have to go through three or four suburbs just to reach the market. Because of the development, there’s no livestock being raised in the immediate vicinity.”

The stockyards, which held the title of the world’s largest livestock market from 1974 to 1981, have been sold to developers who hope to make use of the market’s large acreage. During its peak in 1934, the market was open seven days per week and received 1,474,890 head of cattle and 840,413 calves. The market’s current footprint of 27 acres is far less than its original size, and the marketings are down substantially as well.

“In a given month, we currently handle about 6,000-7,000 head of cattle, the same number of hogs, and probably 2,000 sheep,” said Reed. “We visualize a majority of that business going to our Zumbrota location, with a small amount going to the Albany market. A number of our customers have already gotten used to going to Zumbrota rather than South St. Paul and, in fact, our purchase of the Zumbrota market in 2003 was largely in anticipation of the closing of the stockyards.”

Rather than being a snap decision to close the yards, CLA and its many customers decided that the time had come to shut the doors and move the business elsewhere. While a replacement facility will not be built,
CLA is confident they have reached the best decision for the association.

“We’re a member owner and member governed cooperative, so everyone was involved in the decision-making process,” explained Reed, who said developers plan to use the site for industrial and commercial purposes. “We actually announced the purchase agreement two years ago, and received payment in December of 2006. We then leased the facility back for 18 months so that we could continue to operate until we were ready to make the move final.”

The CLA-owned Zumbrota market is approximately 48 miles from the stockyards and makes for an easier trip to market than does the Albany facility, which is on the north side of the Minneapolis-St. Paul metro area.
“Albany won’t see much extra business as a result of the South St. Paul facility closing because it’s on the other side of the Twin Cities,” Reed notes. “So if the livestock is coming from the south, you would have to haul them all the way through the city to get them to Albany. Zumbrota is closer and is definitely in a rural location, which makes it easier to get to.”

Reed said CLA has made some minor facility improvements to the Zumbrota facility, but that they aren’t linked to anticipated increase in business as a result of the stockyard closing. Reed also points out there is much more that goes along with closing the facility besides dollars and logistics.

“We’re having a celebration which will recognize the history of the stockyards, and we hope it will be an enjoyable day for everyone who can attend,” said Reed. “There are some tremendous memories that a lot of people have about this place, and there are a lot of people who are definitely emotionally attached.”

“It’s a difficult thing to do, to see it close,” continued Reed, “but the livestock industry here and all over the country has changed so much since these stockyards were opened. Most of the big, old stockyards are closed now, and the packing plants are no longer located here like they once were. It’s just a different time.”

The April 11 feeder cattle sale will also be the last sale for all types of livestock and along with the special sale CLA will honor select truckers with the “Ending of an Era” award for their dedicated service to the stockyards. South Saint Paul Stockyards and CLA memorabilia items will be auctioned off with all proceeds going towards the CLA Foundation Scholarship fund.

Reed encouraged anyone who can attend the last sale day to do so, and credited the Minnesota Historical Society for their hard work in keeping the history of the stockyards alive.