Sometimes a new application of an existing technology can make all the difference to an industry. For the lobster industry in Maine, which was losing its world-renowned Maine Lobster brand recognition, the innovation by Shucks Maine Lobster couldn't have come sooner. Lobstermen in the Midcoast region of Maine were receiving 10 cents on a dollar for their product.

The problem was in keeping the lobster fresh. By applying high-pressure water techniques to eliminate bacteria, lobster meat can be taken out of the shell and remain on grocery store freezer shelves for 30 days as fresh seafood, says Daryl Sterling, director of economic development, Town of Richmond. Because of the water process, the tail comes right out of the shell. The lobster is fresh and is not cooked.

The high-pressure water treatment had existed but had never been applied to lobsters before. Shucks Maine Lobster developed the technology to do so inside the company and worked with firms in Mississippi and Canada to perfect the technique. Sterling says the technology developed in Richmond is expanding to grocery store chains and has a huge market potential.

“With this process the lobster trade can remain in Maine, lobstermen are better compensated, and the consumer has the advantage of being on the pier to purchase fresh seafood,” Sterling notes.

Shucks Maine Lobster's insights will have a direct affect on the future of the industry. In locations throughout the country, other food processors and agribusiness companies' activities have a direct affect on local farmers. Such is the case in the Cedar Rapids, Iowa, region, home to corporations such as General Mills, Inc., H.J. Heinz Co. and Cole's Quality Foods, Inc., where a boom in activity will continue to support the farmers in Iowa. What's more, larger companies are contributing to the growth of small and mid-size companies in the region, where one company's waste stream is another company's raw material, says Mark Seckman, president, Priority One, part of the Cedar Rapids Area Chamber of Commerce.

The Quaker Oats Co.'s facility in Cedar Rapids, the largest cereal milling plant under one roof in the world, produces oatmeal, instant grits, pancakes and some cereal products. J. Rettenmaier USA takes the oat hulls left over from Quaker Oats' production of oatmeal to produce a dietary oat fiber. Another firm, SunOpta Inc., a Canadian company, is also producing dietary fiber.

The production of corn syrups and starches also occurs in the Cedar Rapids region, where Archer Daniels Midland-Corn Processing Division, a producer of high fructose corn syrup, supplies local company, Red Star Yeast, Co., which uses the syrup as a growth medium as opposed to molasses, Seckman says. Red Star recently completed a facility in Cedar Rapids to produce liquid and compressed yeast products.

Other corn-related processors in the area include Cargill, which has three operations in the region producing corn starch, corn syrup and soybean products. Penford Products, Co. makes specialty corn starches, primarily for industrial uses in the paper and textile industry. Archer Daniels Midland also has announced an expansion to produce ethanol I in the community.

Another community where local crops make it from the field to the factory, as well as supporting related businesses in the industry is Randolph County, Ill., which is part of a bistate food processing cluster with nearby Missouri communities.

A leading company that completes the circle in this sector is Gilster-Mary Lee Corp., where local farmers (the community consists of 750 farms) provide the wheat that is milled into flour at local millers and shipped to the company, which uses the flour to produce cake mix. Gilster-Mary Lee is a private label food processor and packager for operations such as Wal-Mart Stores. Gilster-Mary Lee has operations in four states and more than 10 plants, says Ed Crow, director, Randolph County Progress Committee, Inc.

Gilster-Mary Lee is a driver of this bistate food processing cluster and has located many of its supporting functions in the region, with operations such as warehousing, a distribution center, a pasta production facility, and a trucking repair center. These entities support the efforts at a box plant and the Gateway Farm Service, for example.

How Can You Help Us Grow?

While creating a food processing circle can ensure industry vitality, local and state incentives can also helping the expansion and/or relocation process. In Bay County, Mich., access to an abundance of sugar beets was important in Michigan Sugar Co.'s decision to move its headquarters to the county, as well as invest $13 million in its existing plant for new equipment, says Fred Hollister, president and CEO, Bay Future, Inc. In addition, a 50 percent real and personal property tax abatement from the local jurisdiction, per year, for a 12-year period, also sweetened the deal.

Michigan Sugar is owned by a cooperative of sugar beet growers in the county and is the nation's third-largest producer of sugar beets east of the Mississippi River. Economic development officials are working to identify food processors that would be able to use the sugar in the county so that the sugar wouldn't have to be exported out of the county.

Hollister says that while the access to the existing facility was important to Michigan Sugar's decision making, the availability of water, and access to a strong transportation network, as well as affordable electric and utility rates, where also important.

Bay County is located on the Saginaw Bay of Lake Huron and provides abundant and affordable water, which is vital to food processing companies. “Because the Saginaw River is navigable, we have the ability to bring ag products and other commodities by barge to ship in and out,” Hollister says. “If you need a bulk product from somewhere else, it can be brought in from the Great Lakes. Shipping by water provides better economies of scale.”

In Martinsville and Henry County, Va., Knauss Snack Food Co., LLC found that the area's abundance of workers would suit its process operation for naturally cured beef products. Due to downsizings in tobacco, textiles and furniture manufacturing, the county featured a 16 percent unemployment rate in the early 2000s, when the company was making its location decision. (The county now hovers at a 7 percent unemployment rate.)

The loss of industry in the county also means an excessive of water and sewer capacities are available to support industry, particularly large water users such as food processing operations.

Knauss Snack Food's began operations in the county with 15 employees and now employs more than 140 people. The company has found that the labor pool's background in manufacturing has provided the quality and quantity of worker the company was looking for with this location, says Mark Heath, president and CEO, Martinsville-Henry County Economic Development Corp. Since locating to the county, the company has increased sales by 20 percent and anticipates record growth during the next year.

Another advantage of the Martinsville area is that it is centrally located on the East Coast, enabling companies to reach two-thirds of the nation's manufacturing base within a day's drive. The community is also adding to its available building inventory with a 75,000- square-foot expandable spec facility, which Heath says would be ideal to support a food industry company.

Vantage Foods, Inc. found similar advantages in terms of available workers and market access in Caldwell County, N.C. The company is building phase one of its facility, totaling 70,000 square feet on a 41-acre site. The meat processor will be operational in May, employing 200 people. The company will supply case ready meats for supermarkets.

“The comments from the company's officials are that our area provides a strong access to markets and well as an available labor force,” says Alan Wood, marketing director, Caldwell County Economic Development Commission. He says there area has witnessed the loss of nearly 7,000 furniture jobs. The skills Vantage Foods requires are transferable from furniture factory laborers.

Another ag-related company finds Caldwell County's availability of fresh water and ideal weather supports its venture to produce caviar. When fully operationally, La Paz will have built as many as 20, 200,000-gallon tanks to raise sturgeon hatchlings. It will take seven years to raise a hatchling before caviar can be harvested. La Paz hopes to produce about 2 tons of caviar from 15 tons to 20 tons of fish.

Another Southeast area that has a high potential for fish farming is Highlands County, Fla., which features an abundance of water to support the operations. The region is home to alligator farms, which process meat and hides.

The community is also home to a unique industry for the growth of caladiums. New technologies are being developed for these leafy plants in regard to cloning of the plants to prevent diseases, says Louise England, executive director, Highlands County Economic Development Commission. Another technology allows the caladiums to grow in sand, where they traditionally have been grown in rich, dark soil. Happiness Farms, Inc., located in Lake Placid, is the largest producer of caladiums in the world.

The county also features nurseries, grape growers, small dairy farms, cattle operations and citrus operations. England says the county is traditionally the first or second largest grower of citrus in the state. As in communities throughout the country, a leading industry supports other companies; in this case the citrus industry spraying businesses and the manufacturers of the sprayers, as well as irrigation companies.

Supporting Player: Infrastructure

Adel and Cook County, Ga., features thriving food processing and agribusiness industries, which are supported by 9 million gallons of excess water capacity per day, says Kerry Waldron, director of economic development, Cook County Economic Development Commission. The state of Georgia is the No. 1 producer of turf grass in the country, and Cook County's two turf grass companies continue to expand their markets.

Companies that site in the country are located within 50 miles of 90 percent of Georgia's ag production, which leads to a strong base of ag suppliers. “We have several repacking companies located here that repackage watermelon, cabbage, tomatoes and cucumbers,” Waldron says. “One company that ships watermelons year round has grown in the last two years from 20 employees to nearly 75 employees.”

On the drawing board to further support Cook County's industry is the establishment of a freezer package storage operation to enhance companies' operations.

Waldron says ag-related businesses will find “south Georgia is the best place to do business in Florida,” thanks to its low costs, and available land, which includes more than 3,000 infrastructure-ready acres, including a new 350-acre industrial park.

In the west, in Box Elder County, Utah, ag businesses will find 17 acres remain at the 101-acre Box Elder County Agri Business Park, which is home to Tarter Gate, which makes gates to keep in horses, sheep, cattle and so forth. Another company, Honeyville Grain, selected the agribusiness park based on its rail infrastructure.

The county's farming background is attractive to ag-related companies, says Susan Thackeray, economic developer, Box Elder County. West Liberty Foods has announced it will build a new 160,000-square-foot facility and employ 250 people in Tremonton. The company will open a meat slicing and packaging operation.

Another announcement in Tremonton is the 40,000-square-foot expansion by Malt-O-Meal at its cereal plant, which will create an additional 40 new jobs. “Our farming background provides these companies with an exceptional workforce,” Thackeray says.

Ag histories and experiences are important to food processing and ag-related businesses when selecting sites. However, an available workforce, proximity to markets, a building inventory and low costs are just as important in the decision-making process.

What's more, companies should seek communities that are developing cutting-edge technologies, innovation, and which are thinking outside of the proverbial box. And sometimes, all it takes is apply an existing technique in a new way to propel an industry to vitality. Just like Shucks Maine Lobster in Richmond is doing for the state's lobster industry.

To learn more information in regard to the companies featured in this article, visit:

Bay Future, Inc., www.bayfuture.com

Box Elder County (Utah), www.boxelder.org

Caldwell County (N.C.) Economic Development Commission, www.caldwelledc.org

Cook County (Georgia) Economic Development Commission, www.cityofadel.us

Highlands County (Fla.) Economic Development Commission, www.highlandsedc.com

Martinsville-Henry County (Va.) Economic Development Corp., www.yesmartinsville.com

Priority One, Cedar Rapids (Iowa) Chamber of Commerce, www.priority1.com

Randolph County (Ill.) Progress Committee, Inc., www.randolphco.org

Town of Richmond (Maine), www.richmondmaine.com

Biofuels' Dreams

Communities are working overtime to develop biofuels initiatives to further ad value to their ag bases. And companies are tuned in to the activities and strategies in order to find suitable partners to assist them in navigating the emerging industry.

While biofuels have been developed or are developing in some communities, the nation's call for oil independence has put the ag industry on high alert to produce more biofuels. For instance, Bay County, Mich., is conducting a biodiesel feasibility study for the community, based on the fact that the county exports soybeans grown in the area to other locations for processing. “We want to process the soybeans into other products with higher value as opposed to exporting them out of the county,” says Fred Hollister, president and CEO, Bay Future, Inc. He is educating bank officials about the opportunities that exist, talking to local jurisdictions about creating the potential of creating tax abatements to support the processes, and is working with the USDA in regard to its loan guarantee programs.

Hollister notes that while an application process is not in place, jurisdictions have been supportive of the idea of tax incentives for value-added biofuels projects.

In Box Butte County, Neb., community officials have applied for a USDA grant to evaluate the feasibility of building and operating an oil seed facility in western Nebraska. The Box Butte Development Corp., Blue Sun Diesel, and a cooperative consisting of growers that specialize in growing oil seeds, were hoping to hear the status of the grant in September.

Box Butte is focusing its attention on oil seeds grown in the community, such as sunflower and canola plants. “We find that the growth of these plants requires less water than corn, so that piqued our interest,” says John Olafson, executive director, Box Butte Economic Development Corp. He says that the area has a shortage of water and is an importer of corn, so the oil seed focus made sense.

Box Butte officials have a three-prong approach to the oil seed processing: for human consumption, for biodiesel production and for feed meal. “The point being that we can put the oil seeds into our crop rotation and add value to our ag industry,” Olafson says.

Another community that will soon become a player in the biofuels market is Randolph County, Ill. Up to this point, ethanol plants were not locating in this ag-based community because of the area's strong commodities transportation system, from the standpoint of two navigable rivers, three rail lines, and proximity to St. Louis, states Ed Crow, director, Randolph County Progress Committee, Inc. He says that it was better to ship the product out rather than add the value of biodiesel and ethanol production because of pricing advantages.

“That is changing and we are involved in discussions about the value of the inland river system, which the community is a part of,” Crow says. “So, we have been ‘discovered' in terms of the transportation system, which bodes well when combined with our productivity in grains.”

For complete details about these biofuels initiatives, visit www.bayfuture.com, www.boxbuttedevelopment.com and www.randolphco.org.

Exploring Genetic Modification

In the discussion of biofuels production, the Memphis region is emerging in the development of ethanol thanks to a project by Viceroy Acquisition Corp. The company will build a 400-million gallon biofuels plant, to focus on biodiesel production, as well as expanding into other types of biodiesel products, says Dr. Steve Bares, executive director, Memphis BioWorks Foundation.

Bares says the Memphis region is a fertile location, where nearly 40 percent of the water in the country flows through the Mississippi River.

In the biofuels sector, companies plan to use soybeans, canola or chicken grease to produce biodiesel fuel. Still others are looking at processing straw grass or cotton stubble to produce ethanol And, Bares says, genetically modified materials are also being explored for the production of fuel crops or as biomass crops. “Clearly this area is positioned to support research and implement the growth of this, and we have a farm base that is ready and capable of doing this,” Bares says.

Memphis' officials believe that these crops are more resistant to disease and will be a more reliable supply for biofuels such as ethanol. They believe that corn is not a good resource for creating biofuels because there is a negative energy gain in that it takes energy to change it into a biofuel. Other crops, which are not food crops, would make a better source for biofuel production. Officials' state that processing these genetically modified nonfood crops, such as variations of switch grass, will eventually result in a positive energy trade.

The long-term will show the effects of the development of genetically modified crops. In the meantime, Memphis officials will research the possibilities, as well as maintaining the use of other crops to create biofuels.

For more details, visit www.memphisbioworks.org.