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September. 2022
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Midwest Leads U.S. in Active Food & Beverage Projects

The Food & Beverage Industry encompasses a wide range of sectors, from traditional meat processing to alternative proteins, to pet foods. Industrial Info is tracking more than $86 billion in active Food & Beverage projects in the U.S. The Midwest region, which includes Iowa, Kansas, Minnesota, Missouri, North Dakota, Nebraska and South Dakota, leads the county in terms of the value of these projects, with more than $17.3 billion worth.


Within the Midwest's Food & Beverage Industry, the agricultural products segment leads by value, thanks largely to several projects involving soybean crushing and processing. As the demand for green fuels such as renewable diesel grows, demand for soybean oil is rapidly escalating. According to a December 2021 article from Progressive Farmer, "Analysts are having a hard time modeling out the soybean oil needs in the near term and long term as more renewable diesel projects are announced. For now, forecasts call for higher soybean prices, expanded acreage, and not enough soybean oil to go around." For additional information see May 16, 2022, article - As Green-Spectrum Diesel Refining Grows, Where Will the Acreage Come From?

Industrial Info is tracking more than $3.8 billion worth of projects involving soybeans in the Midwest. Such projects include N Bowdish Company LLC's (Carroll, Iowa) plans for a grassroot soybean-crushing facility in Norfolk, Nebraska. Construction is expected to kick off in the coming months and upon completion, slated for 2024, the facility will ramp up production to 450 million pounds per year of crude soybean oil, 847,000 tons per year of soybean meal for livestock feed and 77,000 tons per year of pelleted soybean hulls. Subscribers to Industrial Info's Global Market Intelligence (GMI) Food & Beverage Project Database can click here for more details.

The meat and poultry sector ranks second by value for Food & Beverage projects in the Midwest region, with $4.9 billion in projects. Beef and pork projects dominate. One such project, headed by Sustainable Beef LLC (Alliance, Nebraska), grew out of the worker shortages and packing plant shutdowns seen during the onset of the COVID-19 pandemic. The impetus for the project began in 2021 as an effort to work on vertical integration for producers in Nebraska. One of the founding investors of Sustainable Beef, Cassie Lapaseotes, earlier this year told an audience at the Nebraska College of Technical Agriculture in Curtis, Nebraska, "Sustainability to me means being able to have a place to kill our cattle and be sure we can stay in this industry and provide for the next generation."

The proposed facility in North Platte, Nebraska, will process about 1,500 head of cattle a day, paying above-average wages to its workers. Construction on the 300,000-square-foot facility is planned to kick off early next year and be completed in the summer of 2025. It faces some daunting tasks along the way. According to local news media, because the site is on an old city wastewater lagoon, it is going to take an estimated 47,000 loads of dirt to raise the ground above the flood plain. The plant will use the latest in artificial intelligence technology to be able to trace each head of cattle that enters from the time it enters. Subscribers can click here for the detailed project report.

Industrial Info also is tracking more than $150 million worth of projects involving egg production in the region, such as Dakota Layers LLP's (Flandreau, South Dakota) grassroot chicken egg farm in Brookings, South Dakota. In addition to a main building, the facility will include four egg-laying barns to house 180,000 birds. Construction kicked off earlier this year and is expected to be completed in the coming months. Subscribers can click here for more details.

While many of the Food & Beverage projects in the Midwest are positioned early in the agricultural process, "downstream" projects also feature heavily in the region's project activity, with the packaged and prepared foods segment boasting more than $3 billion in active projects in the region. But not all of this intended for human consumption. Out of the 10 highest-value projects in this sector, half are for pet food production. Royal Canin USA Incorporated (St. Charles, Missouri), for example, is doubling the size and installing new production lines at its pet food production plant in North Sioux City, South Dakota, to help meet increased demand. "Over the past two years, the country experienced a boom in pet ownership and heightened focus on pets' health. Royal Canin is seeing significant growth as a result," Royal Canin North America President Cecile Coutens told news media earlier this year. The facility was originally built in 2016, and the expansion is slated to be completed early next year. Subscribers can click here for more details.

Among the region's packaged and prepared foods projects aimed at human consumption is one involving a much-loved item: frozen pizza. Schwan's Company (Marshall, Minnesota) is underway with the addition of production and packaging lines at its frozen pizza plant in Salina, Kansas. Three new packaging lines are being added and three to four new production lines along with processing equipment to produce 100 million pizzas per year. The project kicked off late last year and is expected wrap up by the end of this year. According to The Hutchison News, "The pizzas coming out of the Salina plant, Tony's and Red Baron, are ranked second in the U.S. frozen-pizza market and first for school pizza." The expansion is expected to bring more than 200 jobs. Subscribers can click here for more details.

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