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How Clemens Changed the Pig Business: A Coordinated Model for Pork

Clemens Food Group’s Coldwater plant grew from a partnership with Michigan hog producers. Then-CEO Doug Clemens explained how coordination, rather than owning every stage, could strengthen the pork supply chain.
From TheFinanceBase Team4 min to read
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Clemens Food Group’s change was not simply to build a bigger pork plant. After Michigan hog producers approached the company about a new facility, Clemens worked with them to develop its Coldwater, Michigan, plant, opened in 2017. Then-CEO Doug Clemens described the arrangement as a “coordinated system”: partners contributed expertise and capital assets rather than Clemens owning every step from farm to finished product. He later said the company expanded into hog production as hog supply declined and independent producers became fewer.

What changed in Clemens’s approach?

The business moved toward coordinating more of the pork supply chain while relying on partners for parts of it. That distinction matters: “vertical” integration can suggest one company owns every stage, but Doug Clemens’s 2018 explanation emphasized matching each stage with the people and assets suited to it.

In an interview published October 23, 2018, by Successful Farming, then-CEO Doug Clemens said Michigan hog producers approached the company about developing a processing plant in Coldwater. Rather than describing the project as a Clemens-only expansion, he framed it as a partnership in which producers and the processor each brought strengths to the arrangement. He put the principle succinctly: “Coordinated is a much better approach.”

The interview was written by Betsy Freese, who disclosed that her father sold hogs to Hatfield for more than 30 years. That context is relevant when reading her account of the producer-processor relationship.

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Why did Michigan producers approach Clemens?

The producers wanted a new processing facility, and Clemens had the experience and business infrastructure to help develop one. The plant gave Michigan producers a local processing outlet connected to a larger pork company’s operations. The account establishes that producers initiated the approach; it does not provide a detailed breakdown of each partner’s investment, ownership stake, or contractual terms.

Clemens’s company history says Coldwater opened in 2017. By the time of the 2018 interview, Successful Farming reported that the facility was processing 10,000 hogs a day. Clemens’s history likewise describes 10,000 hogs per day as the plant’s capacity. Those figures describe Coldwater, not the company’s current total throughput.

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Why did Clemens move into hog production?

Doug Clemens’s stated reason was supply security. In the interview, he said, “The hog supply started to go down,” and connected the shortage to the reduction in independent hog producers. His explanation was that a processor dependent on outside supply had reason to take more responsibility for ensuring hogs were available.

He also recalled the company’s response to a steep hog-market decline in 1998: “We knew that without producers we didn’t exist.” The remark captures the commercial logic behind the coordinated approach: the processor needed producers, and producers needed reliable processing access. The interview provides Clemens’s rationale, not an independently measured account of industry-wide producer numbers or supply trends.

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Coordination versus owning every stage

Clemens’s model sits between a purely arm’s-length buying relationship and complete ownership of every link. In his account, partners could contribute specialized knowledge, farms, or capital assets while Clemens focused on the processing and food-production work in which it had experience. The company today describes its operations as vertically coordinated across farming, processing, and transportation, a formulation consistent with that emphasis on connecting stages without claiming that it owns every asset involved.

Business question What the Clemens account says
Who initiated the Coldwater project? Michigan hog producers approached Clemens, according to the 2018 interview.
What made the arrangement different? Doug Clemens described partners contributing strengths and assets rather than Clemens owning every step.
Why add hog production? Clemens said declining hog supply and fewer independent producers prompted the company to take greater responsibility for supply.
What capacity figure was reported? Coldwater was reported at 10,000 hogs per day in the 2018 interview; Clemens’s company history also calls that the plant’s capacity.
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Capacity did not guarantee more output

The Coldwater capacity figure was not a promise of unconstrained production. In 2018, Clemens identified hog availability, labor, and customer demand as factors affecting whether the plant could add shifts or increase output. These were interview-era constraints, not a statement of current operating conditions.

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How Coldwater fits the company’s history

Clemens’s company history dates its pork business to 1895, when John C. Clemens began taking pork from his farm to Philadelphia. The company reports later milestones including the launch of Farm Promise in 2014 and the Coldwater facility’s opening in 2017. Its current company pages describe Clemens as a sixth-generation family-owned business spanning hog farming, food production, and transportation. In 2024, the company says it acquired Kunzler.

The history helps explain why Coldwater was more than a stand-alone plant opening: it fit a long-running pork business seeking a dependable connection between production and processing. But the clearest account of the strategy remains Doug Clemens’s 2018 explanation of why the company preferred coordination with partners over owning every stage itself.

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