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Food, Feed, Fiber, Fuel and Fun

Food, Feed, Fiber, Fuel and Fun. South Central & Southwest Minnesota 2011 EDAM Summer Conference June 16, 2011. South Central / Southwest Geography. 27 Counties 230 Cities 486 Townships 2 Initiative Foundations 3 WSAs 3 MNDOT Districts 4 RDCs 4 Agricultural Districts

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Food, Feed, Fiber, Fuel and Fun

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  1. Food, Feed, Fiber, Fuel and Fun South Central & Southwest Minnesota 2011 EDAM Summer Conference June 16, 2011

  2. South Central / Southwest Geography 27 Counties 230 Cities 486 Townships 2 Initiative Foundations 3 WSAs 3 MNDOT Districts 4 RDCs 4 Agricultural Districts 19 Institutions of Higher Education

  3. SC/SW Regional Overview • Population: 513,563 (2010) • Population Growth 2000-2010: 0.6% (compared to 7.8% statewide) • Percent Minority Population: 9.9% (compared to 20.5% statewide) • Per Capita Personal Income: $36,891 in 2009 (compared to $41,854 statewide) • Per Capita Income Growth 1999-2009: 51% (compared to 37% statewide) • Unemployment Rate: 6.7 percent annual average in 2010 (compared to 7.3% statewide)

  4. Regional Employment Base Source: Quarterly Census of Employment and Wages, MN DEED.

  5. Signature Industries • Crop Production • Animal Production • Food Manufacturing • Agriculture Support Activities • Truck Transportation • Machinery Manufacturing • Printing & Related Support Activities • Nursing & Residential Care Facilities

  6. Major Employers in the Region • JBS Swift • Jennie-O Turkey Store • Southern MN Beet Sugar Co-op • 3M • AGCO • Taylor Corporation • Brown Printing • Immanuel-St. Joseph’s—Mayo Health System • Jackpot Junction Casino • Minnesota State University Source: Reference USA. Search based on single site total employment.

  7. What We’re Known For

  8. Agriculture • 25,670 of the 80,992 farms in Minnesota are in the 27 county region • Over $6.5 billion in the total market value of agricultural products sold • 49.5% of the total market value of agricultural products sold in the state • 755,125,000 bushels of corn produced in 2010 • 176,991,000 bushels of soybeans produced in 2010 • > 5,584,700 hogs and pigs in 2009 • Over 10,000,000 turkeys raised

  9. Did You Know? • In 2007, Benson MN became home to the first US poultry litter to electrical energy power plant. Xcel Energy buys the power from Fibrominn • 55 mega-watt power plant • combusts more than 700,000 tons of poultry litter and biomass each year • This plant generates enough renewable energy to provide approximately 40,000 homes with power

  10. Agriculture

  11. Agriculture

  12. Did You Know? • Two of the largest soybean processing plants in the U.S. are located in Mankato - ADM and CHS - primary products produced: refined soybean oil for cooking oil, oils for shortening and margarine, frying oil, low-trans fat products, candle wax and soybean meal.

  13. Agriculture

  14. Did You Know? According to the 2010 US Census, Martin County’s population is 20,840. Martin County produces over 800,000 hogs/year. That’s 38 hogs per person.

  15. Did You Know? • The pork industry supports over 20,000 jobs in Minnesota, including a significant amount of employment in the south-central Minnesota region. • These jobs include hog management and care, meat processing, building construction and equipment manufacture, feed processing, trucking, veterinarians, etc. • This region contains some of the state’s major producers and integrators in the swine industry, several major feed processors and equipment manufacturers and some of the largest veterinarian clinics in the upper Midwest.

  16. What We’re Known For

  17. Food Production

  18. Food Processors/Manufacturers • Seneca Foods Corporation • Schwan Food Company • Jennie-O Turkey Store • JBS Swift & Company • Willmar Poultry Company • Southern MN Beet Sugar Coop • PM Beef • Turkey Valley Farms • Tony Downs Foods • Armour-Eckrich Meats • First District Association • Golden Oval/Rembrandt Ent. • Sparboe Farms • Dairy Farmers of America • Birds Eye • Michael Foods • Fairmont Foods • Del Monte Foods • Kerry Ingredients • Ellison Meats • Gold’n Plump • Jack Links • Monogram Meat Snacks • Diane’s Desserts (Heinz) • Davisco Int’l – LeSueur Cheese Company • Kraft • Noah’s Ark • AMPI

  19. Food Manufacturing • Employment – 14,800 • 32.7% of food manufacturing employment in the state • Output (sales) - $9,724,528,939 • Payroll - $676,272,380

  20. Did You Know? • Headquartered in Marshall, the Schwan Food Company is one of the largest frozen-food companies in the nation. It is a $3.7 billion dollar organization and the third-largest privately held corporation in Minnesota, according to 2010 rankings by Forbes.

  21. Ethanol and Biodiesel • 15 of 21 ethanol facilities • 894 MG/Y • 1.1 BG/Y • 2 of 4 biodiesel facilities • 33 MG/Y • 65 MG/Y

  22. Ethanol • 252,000,000 bushels of corn • Ethanol Output: $2,731,410,000 • Employment Impact: 6,854 • Currently, E10 mandate • Mandate requires E20 by 2013 • Cellulosic ethanol goal: 25% of ethanol blended by 2015 derived from cellulosic sources = 60 MG/Y

  23. Wind Energy Installed Capacity: 2,436.62 MW In Development: 1,337.5 MW In Queue: 20,010.6 MW Ranked 4th in installed capacity Percent of power provided by wind: 9.4% Number of homes powered by wind farms: 630,000 State wind resource: 489,271 MW at 80 meter hub heights Wind resource could provide 25 times current electricity needs

  24. Wind Energy Total direct and indirect jobs supported: 2,000 to 3,000 Annual property tax payments by wind owners: More than $6 million Annual land lease payments: $7 million Annual carbon dioxide avoided: More than 4.3 million metric tons

  25. Recent Expansions • AGCO Corporation, Jackson - $14M; 125 jobs • Minnesota Rubber and Plastics, Litchfield - $5.4M; 150 jobs • CNH, Benson - 100+ jobs • Monogram Meat Snacks, Chandler - $5M; 231 jobs • First District Association, Litchfield - $75M; 100 jobs • Singleteary Food Solutions - $10M; 200 jobs • Ralco Nutrition, Marshall; $10M; 40 jobs

  26. Recent Expansions

  27. Major Job Losses • Hutchinson Technology, Hutchinson – from 2007-2011 (last lay-off May 2012); over 2,000 employees • Suzlon Rotor Corporation, Pipestone – October 27, 2010; 270 employees • Farley & Sather’s, Round Lake – January 18, 2010; 200 employees • Bayliner Marine Corp, Pipestone – December 31, 2008; 260 employees • Westin Automotive, St. James – June 30, 2008; 155 employees • Coleman Powermate, Springfield – February 27, 2008; 250 employees

  28. Regional Challenges • Iowa and South Dakota • Declining/aging population • “Brain Drain” phenomenon in smallest counties; losing seniors • Lowest median wages in the state • Huge wage disparity for highly-skilled, highly-educated workers

  29. The Future (Opportunities) • South Central/ Southwest Minnesota is strong in agriculture • SC/SW still has a high concentration of manufacturing employment; linked to agriculture • SC/SW leads the state in renewable energy and bioscience industries

  30. Vision for the Future • Bio-based products and Biorefineries • Fuels, precursors, paints, base chems, organic acids, biopolymers, feed grains, novel molecules • Biogreentech • Increasing agricultural productivity • Reducing environmental impacts • Biological techniques for optimizing value of plants and microorganisms • Agbiotech Innovation • Increased yield • Drought tolerance and water use efficiency • Nutrient use efficiency • Increased spectrum of pest and disease resistance

  31. Did You Know? The City of Olivia has the highest concentration of seed research and processing companies of any place on the globe. Because of Olivia’s popularity with seed companies and its notoriety for corn production, in 2004, the Minnesota Legislature designated the city "the Corn Capital."

  32. Vision for the Future • Animal and Veterinary Bioscience • Animal health and disease • Nutrition and feed technology • Reproduction and assisted reproductive technologies • Genetics and biotechnology According to The World Economic Forum, the total addressable bio-based product market: $8.3 trillion

  33. Partnerships Within and Beyond Region • City and County EDAs • Port Authorities • Chambers • Economic Development Professional Organizations • MNSCU and U of M • AURI • Initiative Foundations • Regional Development Commissions • Southern Minnesota Center for Regional Competitiveness • RAIN Funds and Equity Investor groups • Financial institutions • Community Development Corporations (NMTC) • Utilities • WIBs • K-12 • Rail Authority/Railroads • State Agencies • BBAM • Center for Rural Policy • Trade Organizations

  34. Did You Know? • Mankato was ranked 44th by the 2010 Forbes report Best Small Places for Career and Business. Rankings are based on cost of doing business, projected job growth, educational attainment, and population size. • Willmar ranked 48th among more than 570 micropolitan areas in the 2011 study “Economic Strength Rankings” by Policom’s. • Headquartered in Fairmont, Rosen's Diversified is the fifth largest private company in Minnesota, according to 2010 rankings by Forbes. The $2.5 billion company is an agricultural holding company that specializes in beef processing, agricultural chemicals and fertilizer distribution, trucking, pet food and treats, and meat snacks.

  35. Did You Know? • For many years, the world’s largest twine ball has sat in Darwin. It weighs 17,400 pounds, is twelve feet in diameter, and was the creation of Francis A. Johnson.

  36. For Additional Information: www.positivelyminnesota.com Lisa Hughes Business Development Dept. of Employment and Economic Development 507.389.6779 lisa.hughes@state.mn.us

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