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Factors Driving Future Plant Sites and expansion

Factors Driving Future Plant Sites and expansion. Minnesota-Wisconsin Dairy Policy Conference April 3, 2013 Rochester, MN . Who is leprino foods?. Started in 1950 as a corner store in Denver, CO Privately held and innovation driven Today, Leprino Foods:

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Factors Driving Future Plant Sites and expansion

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  1. Factors Driving Future PlantSites and expansion Minnesota-Wisconsin Dairy Policy Conference April 3, 2013 Rochester, MN

  2. Who is leprino foods? • Started in 1950 as a corner store in Denver, CO • Privately held and innovation driven • Today, Leprino Foods: • Is the largest producer of mozzarella in the world • Holds over 50 patents for mozzarella cheese- making technologies • Also make provolone, reduced-fat cheddar, reduced- fat Monterey jack, and Mexican cheese blends • Is the largest producer of lactose in the world and leading supplier of whey protein and sweet whey

  3. locations

  4. Plant Siting Considerations • Milk supply • Ability to develop desired milk volumes • Long-term viability of milkshed • Ability to service target market • Logistics • Competitive landed all-in costs • Regulatory & business environment • Current • Future Risk • Workforce considerations

  5. Milk Supply • Ability to develop desired milk volumes • Scale efficiencies significantly impact cost of manufacturing, particularly for bulk commodities • Scale efficiencies less of a factor with small batch processing

  6. Scale Efficiencies Important for Commodity Products Source: Stephenson Testimony, Class III/IV Hearing (9/16/2006)

  7. Milk Supply • Long-term Viability of Milkshed • What is the health of the producer sector? • Absent milk price and other government programs, would fundamentals favor milk production in the area? • Resource availability (feed, water, etc) • Climate conducive to efficient milk production

  8. December 2011: U.S. Milk Marketings by County

  9. Ability to service target market • Logistics • Can you deliver product within customer expectations of: • Remaining shelf life • Responsiveness • Competitive landed all-in costs • Combined cost of inputs (including milk) and costs of manufacturing, transportation and distribution

  10. Regulatory & Business Environment • Current • Supportive (or at least, accepting) of animal agriculture and manufacturing • Tax & fee structures • Business development incentives • Future Regulatory Risk • Science-based approach to environmental issues • Economic-based approach to pricing • Safety valves in regulated pricing system

  11. Workforce Considerations • Sufficient pool of potential employees within reasonable commuting distance • Is there a dairy (or food production) culture? • Is the quality of life in the area going to aid or challenge recruiting?

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