My name is Christian Dillstrom and I am an international growth hacker with over 10 years of experience. Also, I am the most read business article author in the World for the fourth year running.
In addition, I serve my client US Southeast Region Collaborative as a Global Growth Ambassador.
As I am honored to serve this great region, it is my pleasure to publish content about US Southeast Region for my tens of millions of monthly global business readers.
-- Christian Dillstrom
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Despite a trade war with China that’s clobbering U.S. farmers, locations that have established strong agribusiness and food processing sectors continue to thrive as production moves closer to markets.
According
to U.S. Department of Agriculture Chief Economist Robert C. Johansson,
“Our general expectation is for continued declines in real agricultural
commodity prices over the next 10 years. Falling commodity prices are
the result of continued production growth, which continues to outpace
global demand.”
With respect to soybeans, Dr. Johansson
pointed out that, “while U.S. soybean prices have been slightly buoyed
amid some signs of progress in negotiations, the export outlook for this
year’s crop (2018/19) remains challenging.
Currently, the U.S. has
exported 24 million metric tons of soybean, down 13.5 million metric
tons from this time last year. Under the trade dispute, exports to China
alone have plummeted by 22 million metric tons, or over 90 percent.”
The
record high [soybean] stocks in the U.S. due to the trade situation
will take several years to unwind, which will weigh on U.S. prices going
forward even with potential China purchase agreements.
Current
estimates show that prices for soybeans are likely to take at least
until the 2020 crop year to recover.
VALDOSTA-LOWNDES COUNTY IS CENTRALLY LOCATED FOR GROWTH
Valdosta-Lowndes
County, GA is a vibrant and premier location for business development
opportunities. Located midway between Atlanta and Orlando in the heart
of South Georgia, Valdosta-Lowndes County is strategically positioned
for businesses to access and serve the global market.
They make it easy
for small, medium-sized and large companies to establish healthy roots
for success. The Valdosta-Lowndes County Development Authority continues
to foster relationships with existing businesses to ensure they
prosper.
Valdosta-Lowndes
County serves as an economic, service, professional, retail, healthcare
and tourism hub for a 15 to 18 county region located within South
Georgia and North Florida.
With eight industrial parks,
Valdosta-Lowndes County, Georgia has the perfect fit for almost any
industry.
Each park has its own unique attributes, from rail served for
plastics and manufacturing to parks situated near Interstate 75 and just
north of Interstate 10 for distribution and service industries.
Three
of the industrial parks—Bassford Business Park, Miller Business Park and
Westside Business Park—are recognized as GRAD sites (Georgia Ready for
Accelerated Development).
“Our prime location, along with strong
logistics and supply chain network provides a competitive advantage in
helping businesses move their products quickly,” said Andrea Schruijer,
executive director of the Valdosta-Lowndes County Development Authority.
Key
industries in Valdosta-Lowndes County include advanced manufacturing,
distribution and logistics, and agribusiness and food processing.
With
a labor force of over 177,700, Valdosta-Lowndes County is prepared with
an experienced, educated and productive workforce.
It is home to a
thriving K-12 education system that provides excellent educational
opportunities to secure a productive future workforce. Lowndes County
also is home to five higher education institutions, including Valdosta
State University and Wiregrass Georgia Technical College.
Valdosta
State University (VSU) has a robust enrollment of more than 11,000
students and 2,600 faculty and staff. VSU incorporates state-of-the art
technology and a next-generation approach to learning and leading in a
global world.
Students can earn Bachelors, Masters and Ph.D. degrees in
more than 90 different programs of study. While the majority of VSU
students are from Georgia, the university’s 2017 enrollment also
included students from 50 states, the District of Columbia and 60
countries.
Wiregrass Georgia Technical College is one
of the nation’s fastest growing public two-year colleges and helps its
more than 6,000 students hit the ground running in a relentless global
marketplace.
Wiregrass offers a full slate of programs (including
Digital Media, Tech and Industry, Business, Professional and
Healthcare), while collaborating with local employers in targeted
workforce training, and other educational providers to create innovative
new learning resources.
An excellent example is Wiregrass Tech’s new
allied health sciences program, which is offered in collaboration with
VSU and South Georgia Medical Center.
Valdosta-Lowndes
County, and the entire state of Georgia, is known for having a favorable
business climate.
As a right to work state, Georgia provides fast-track
permitting, competitive warehouse costs and low property tax rates.
Valdosta-Lowndes County is an ideal location to do business. The Valdosta-Lowndes County Development Authority
(VLCDA) is here to help businesses succeed.
Whether you’re expanding,
relocating or just starting up, the VLCDA is working to build a
groundbreaking community.
GLOUCESTER COUNTY: A GEM IN VA’S MIDDLE PENINSULA
Gloucester
County, VA is strategically located in the southeastern portion of
Virginia’s Middle Peninsula. The County’s industries have traditionally
been associated with the abundant natural resources, primarily seafood,
found in the area.
With its advantageous location in the geographic
center of the Eastern seaboard, the county is experiencing an increased
diversification in manufacturing activities.
The
state capital is located 59 miles to the west and Washington D.C. is
153 miles north. The Port of Hampton Roads is 45-miles south. Gloucester
is located within the Virginia Beach-Norfolk-Newport News Metropolitan
Statistical area (MSA).
Gloucester County offers a low
cost of doing business, desirable quality of life, state of the art
schools, skilled labor force and affordable housing.
The county provides
a small business incentive program that includes rent assistance,
property improvements, façade improvement, advertising and website
development grants to new and existing businesses.
In addition,
Gloucester is one of 212 Opportunity Zones designated by Gov. Ralph
Northam. The Opportunity Zone offers Federal Tax Credits to new and
expanding businesses.
Another incentive is the new Company Incentive
Program that provides the benefits of no Virginia corporate income tax
on Virginia sales and access to the Commonwealth’s Development
Opportunity Fund that provides up to $2,000 per year per new job for six
years.
Gloucester is one of 60 Virginia localities that is an eligible
locality for this program. The Gloucester County Department of Economic Development is committed to providing these benefits and more to new and expanding businesses.
Agribusiness
is one of the county’s top targeted markets for new business
recruitment. There are several seafood manufacturing, food processing,
forestry facilities in the county and a skilled workforce.
Gloucester is
also home to the renowned Virginia Institute of Marine Science, a major
marine research center conducting global research for the blue/green
economy.
Whitley’s Peanut Factory has called Gloucester
home for the past 30 years, enjoying the low cost of doing business
here in the county and attributing their success to the skilled
workforce.
In April of 2018, Secretary of Agriculture and Forestry, Ms.
Bettina Ring announced that the company was expanding, creating more
jobs and capital investment for county.
In December
2018, Secretary Ring traveled back to Gloucester to announce Zoll
Vineyards, a new farm-to-table winery, was coming to the county.
The
company plans to use Virginia grow-grapes, honey and apples to produce
wines, meads and ciders. The owner Frank Zoll plans to offer food
parings to winery visitors, featuring meat, fish and produce grown on
site.
Over the past year, two new craft breweries have
opened providing a variety of ale for the beer lovers. That Damn Mary’s
Brewing Company is a restaurant-brewery. The beer is brewed for sale in
the restaurant and bar. The beer is dispensed directly from the
brewery’s storage tanks.
The Gloucester Brewery, located on Main Street,
is a small brewery with a hometown atmosphere. The Gloucester Brewery
hosts local food trucks nightly for food that pairs well with the
different taps of flavored ale. Both breweries are independently owned
and operated.
Gloucester is pleased to be home to Canon
Environmental Technologies, Inc. (CETI). Canon is the world’s largest
recycling company.
In 1990, Canon introduced a cartridge recycling
program through its Clean Earth Campaign Program. CETI carries out a
zero-landfill waste by reusing parts, recycling materials and employing
energy recovery.
In 1996, Canon Environmental Technologies, Inc. built a
280,000 square feet recycling plant in Gloucester. The company
employees 150 people.
The county has one business park,
Gloucester Business Park, with two remaining parcels ready for
development.
There are plans to expand the current park by mid-2020. The
goal is to have at least two, Tier-4 sites, prepared for shovel ready
tracts over the next 12-months.
VINELAND, NJ: GROWING GREAT THINGS
From
a variety of fruits, vegetables and herbs, to Italian meatballs, Philly
cheese steaks and European pastries, Vineland, NJ’s agribusiness and
food processing operations contribute significantly to the state’s
growing $126 billion food industry and agricultural sector.
Some of the
largest international brands, including companies like Tyson Foods,
Hanover Foods, Archer Daniels Midland, the Agro Merchants Group and Rich
Products, are located here.
These, along with a variety of national and
regional companies, are supported by Vineland’s abundant cold storage
and third-party logistics operations.
Vineland
is strategically located in the heart of the Northeast corridor within
minutes of the major arterial highways that link the city with large
markets such as Philadelphia, Baltimore/Washington D.C. and New York
City.
In fact, more than 22 million customers who represent over $800
billion in disposable income live within a two-hour drive. This is just
one of the many factors that is attracting new facilities and expansions
within the city.
“Selecting the perfect location is a
key component of any strategic business model,” said Mayor Anthony
Fanucci.
“Companies look for the right blend of financial incentives,
workforce, business climate and quality of life to be successful.
Vineland offers this, and much more, including two existing industrial
parks and a third 285-acre site currently under development, local
railway access, close proximity to international airports and major
ports, and the largest farmers’ cooperative on the East Coast.”
Additionally,
companies doing business in Vineland benefit from low cost electric,
water and sewerage rates through the Vineland Municipal Utilities and
Landis Sewerage Authority which have undergone recent expansions in
order to ensure future capacity.
There also is a well-established
network of support services, technical expertise and resources such as
customized workforce education and training, free recruitment and
screening services, a designated Urban Enterprise Zone and a successful
revolving loan fund program.
These factors, combined
with the city’s pro-business approach, have led to a surge in new
development.
“We appreciate the investment that companies are making
when they choose to locate here so we do our best to be a true partner
in the process,” said Vineland Economic Development Director Sandy
Forosisky.
“We provide what we like to call ‘Business Concierge
Service,’ which is designed to make expansion and relocation projects
easier. We are a clearinghouse for information, while acting as a
liaison to city government, to move companies smoothly through the
permitting and licensing process.”
For example, Kopke
Fruit, which is headquartered in Great Neck, NY, currently is building
Phase One of a new 170,000-square-foot facility on a 23-acre site.
The
company imports the finest fruits from all over the world for
distribution throughout North America.
“Kopke was considering other
locations but was drawn to Vineland, in part because of the existing
water and sewer infrastructure and our approval process,” Forosisky
said.
They join other recent arrivals over the past 18 months, including
F&S Produce, Seashore Fruit & Produce Company and Infinity
Herbs.
Another new arrival is California-based Del Rey
Avocado, which located their East Coast operation here and within a year
had to double capacity.
Thanks to consumers in the Eastern United
States, and their growing appetite for quality Del Rey Avocados (which
include conventionally grown, organically grown and the highly sought
after Fair Trade product lines), the company had to add an additional
30,000 square feet to the facility which services as far north as Maine,
south to the Carolinas and west to the Missouri Valley.
According to
company officials, Del Rey is one of the few California-based companies
that owns its facilities on the East Coast, which gives them total
control over operations.
“We had a business
relationship with companies in the city, so it made perfect sense for us
to purchase a location there,” said Del Rey Avocado President Bob Lucy.
“With the addition of new state-of-the-art cooling, ripening and
bagging facilities in Vineland, we feel well positioned to service all
avocado needs in the growing Northeast region for years to come. It’s a
great location for us.”
An existing operation which is
seeing rapid growth is Davy Cold Storage, which is supported by their
sister company MJD Trucking.
Since 2016, the company has added 75,000
square feet of capacity to the existing 78,000 square feet and now has
approximately 17,000 pallet positions.
“The incentives the city was able
to offer, including affordable land and their low interest loan
program, made it very attractive for my parents to originally locate MJD
in Vineland, which was soon followed by our cold storage operation,”
said Vice President Michael Davy.
”It turned out to be the best decision
we ever made. The city staff is great to work with, and they are always
there for us with whatever we need.”
“The Vineland
location provides easy access to Routes 40 and 55, and Interstates 95
and 295, which makes it easy for MJD to move our customers’ frozen and
refrigerated products to locations along the East Coast, southwest to
Texas and northwest to Chicago,” Davy said.
The Davy
expansion, along with new arrivals, including Legacy Cold Storage,
M&O Freezer and KRES Cold Storage, will now give Vineland nearly
40,000,000 cubic feet of cold storage capacity.
“We
have taken a very aggressive approach when it comes to development by
marketing to site selectors and letting them know what we have to offer,
which has paid off. As a result, we are confident about the future,”
Fanucci concluded.
INDIANA FEEDS THE WORLD
From
hams to turkeys to dairy products, Hoosier farmers help put food on the
table both at home and abroad. With nearly 15 million acres of
farmland, Indiana’s farms grow, produce and process some of the
highest-quality products in the world.
“International
markets seek us out for the quality of our products and the safety of
our product handling,” said Bruce Kettler, director of the Indiana State
Department of Agriculture.
The state ranks 8th in the nation in
agricultural exports, with just over $4.6 billion in agricultural
products exported in 2017.
Looking internationally
helps keep Indiana top of mind, Kettler added.
“Sometimes, all a company
knows about the U.S. is what’s happening on the East and West coasts.
If we’re talking agriculture, they need to know what Indiana offers.”
Indiana’s
commodity and livestock products are much sought after in the food
processing industry, Kettler noted.
“Processors take the raw commodities
our state produces and does something that adds value and creates jobs.
Where we can and how we can, we want to develop that.”
“When
we narrow down needs, Indiana rises to the top in terms of business
climate, culture, tech, supply chain infrastructure and research
assets—that’s what they’re looking for,” Kettler added.
For
the value-added food processing giants who dot the southern half of the
state, trade missions represent an important avenue to expanding beyond
the domestic market—while singing the praises of the advanced supply
chain they enjoy thanks to Indiana farming operations.
Hoosier
Energy, a generation and transmission cooperative serving 18-member
electric cooperatives in central and southern Indiana and southeastern
Illinois, supports the state’s efforts to encourage direct foreign
investment in Indiana agriculture and related added-value businesses.
“Maintaining a global focus helps farmers here at home,” noted Harold
Gutzwiller, Manager, Economic Development and Key Accounts for Hoosier
Energy.
“Not everyone is aware of Indiana-grown grains and products or
the supply chain infrastructure we have in place to support the
businesses that depend upon those products.”
The supply chain expertise in Indiana is worth pointing out, Gutzwiller said.
When
Farbest Foods, one of the nation’s largest producers of turkeys,
announced a new $70 million production facility in Vincennes a few years
ago, investment continued down the food chain.
Growing barns, corn and
other grains were needed to supply those mills while also providing area
farmers with an opportunity to diversify their operations.
“We
can show how successful the farmers in our service territory are to the
supply chain in supporting a major agribusiness investment,” Gutzwiller
said.
“Our farmers produce the raw products that have enabled
value-added producers to grow and expand and provide jobs here. If an
agricultural delegation is thinking of locating in Indiana, or wants to
learn more about supply chain efficiencies, we’re here to help the state
any way we can.”
GROW YOUR ROOTS IN FLORIDA
Florida’s
agriculture, natural resources and food industries collectively
represent the state’s second largest economic engine and account for
two-thirds of its land.
While Florida is known around the world for its
citrus, the state also is a leader in the production of products,
including nursery and greenhouse crops, seafood and honey.
In fact,
Florida ranks among the top four states for production in 15 different
crop categories.
Having the proper infrastructure in
place to export these crops is just as important as producing them, and
Florida excels at it.
In 2017, Florida’s agricultural exports totaled
more than $4 billion and over the past decade has increased at least 30
percent.
Florida’s export industry is so grand that 90
percent of all perishable imports into the U.S. from Latin America come
through South Florida–including fresh flowers.
The
Sunshine State has supplemented its geographic advantages and cultural
ties to Latin America with an extensive trade and transportation
infrastructure, and streamlined logistics and customs operations to
reduce cool chain disruptions.
These same amenities have helped make
Florida one of the top 10 states for agricultural exports.
Meanwhile,
Florida, already a leader in industrial food-commodity cold storage, is
poised to see strong growth in cold storage warehousing and
distribution with the rise in online grocery and meal kit delivery
sales.
Florida’s large and growing population has been a
growing customer base for a range of new grocery delivery options, from
Instacart to Walmart Grocery Delivery.
According to CBRE, growth in
online grocery and meal kit delivery sales in recent years will generate
demand for up to 100 million additional square feet of cold storage
warehousing space over the next five years.
The bulk of this demand is
expected to be concentrated in major food producing states like Florida,
and other states like California, Texas, Wisconsin and Washington where
there already is a significant food supply chain in place.
All
of this activity is supported by Florida’s large food manufacturing
base. Florida is home to more than 4,600 food facilities registered with
the Food and Drug Administration.
That’s the third highest among all
U.S. states. In fact, some of Florida’s best known national brands are
in the food and beverage business: Boar’s Head, Fresh Del Monte Produce,
Cott, Florida Crystals and Publix.
With a diverse
array of agribusinesses choosing Florida as its home, it’s no surprise
that the state has new industries emerging in the marketplace. Hemp is
one of those emerging industries in the U.S. and is poised to become a
multibillion dollar enterprise.
Florida’s deep agricultural heritage,
climate and farming infrastructure make Florida an ideal location for
hemp production. Recent legislation created a state industrial hemp
advisory council, pilot projects and a state hemp program.
State leaders
see the potential for hemp products to replace certain plastics,
Styrofoam, paper and concrete, and for hundreds of thousands of acres of
Florida farm land dedicated to industrial hemp production.
The
growth of the industry and the development of new hemp-based
bio-composite materials, food additives, cosmetics and medicinal
products is being supported by the University of Florida’s Institute of
Food and Agricultural Sciences (UF/IFAS).
It has launched a pilot
research program with Florida-based Green Roads Inc. to explore the
potential to grow industrial hemp across the state. UF/IFAS is one of
the nation’s largest comprehensive agriculture research extension
systems and boasts a strong track record supporting innovation in crop
varieties, pest management and growing methods.
In fact, UF/IFAS has
ranked 1st or 2nd among universities for agricultural research and
development expenditures every year since 2000. It is no surprise that
its use of technology makes UF/IFAS a leader.
UF/IFAS uses soil moisture
sensors to help farmers maximize their water efficiency, allowing
farmers to view the data directly on their mobile phones to make
decisions in a timely manner.
Florida’s agriculture
industry employs more than 2 million people and contributes more than
$100 billion to the state’s economy each year. The Sunshine State also
is a business-friendly state because of its low tax environment and tax
breaks for target industries including agriculture.
Florida was ranked
the second-best state for business by Chief Executive Magazine. It also
ranked first in the Southeast U.S. and fourth in the nation on the Tax
Foundations State Business Tax Climate Index.
With no personal income
tax and a highly skilled workforce, Florida deserves a spot on
everyone’s short list for agribusiness projects.
Florida Power & Light Company
(FPL) is focused on growing Florida’s economy, specifically the
agribusiness sector, and offers white glove support to those
agribusiness projects considering the Southeast U.S.
As one of the
nation’s largest, cleanest and most reliable electric utilities, FPL has
created innovative solutions to drive down electricity costs. FPL
offers a commercial/industrial rate that is 41 percent below the
national average.
FPL also provides tangible, sustainable benefits for
its more than 5 million customers. In fact, FPL is the largest utility
by retail electric sales in the United States, serving 35 counties, or
more than 50 percent of Florida’s population.
VALUE-ADDED AGRICULTURE IN HUTCHINSON, KS
Located in central Kansas, the city of Hutchinson and Reno County
have had strong job growth with abundant value-added agriculture
opportunities, manufacturing and food processing industry expansion, and
entrepreneurial ventures.
From
large corporations to entrepreneurial ventures—companies like ShieldAg,
Kansas Protein Foods, Kincaid Manufacturing and other growing ag based
manufacturers of equipment and food products are finding growth
opportunities abundant in this central Kansas community.
Agriculture
is Kansas’ largest industry, providing nearly $64 billion in total
economic contribution to the state, approximately 42 percent of the
total economy. Agriculture, food and food processing sectors support
over 6,674 jobs in Reno County, 18 percent of the county workforce.
The
sector provides a total economic contribution of approximately $1.6
billion. Main crops include wheat, soybeans and corn, with an abundance
of production agriculture and a diversified mix of crops, beef
production, dairy and other expected aspects of the ag economy.
Farm
machinery and equipment manufacturers contribute $252.9 million to the
economy. Other top ranked sectors of the ag economy include meat
processing, flour milling, paperboard mills, beef cattle ranching, grain
farming, wholesale trade, spice and extract manufacturing, oilseed
farming and fluid milk production.
With support of
state and local programs that provide resources to support growth, a
local economic development team at the Hutchinson/Reno County Chamber
and Greater Hutch, and the focus on the State of Kansas’ Strategic
Growth Initiative, it seems that companies in Reno County have all of
the ingredients for success.
The cluster of industries and services,
transportation connectivity with two Class I Rail providers, a certified
shovel ready industrial park, a stable and qualified workforce, provide
a location which fosters new business growth and supports business
expansion.
Debra Teufel, President of the Hutch
Chamber, cited location advantages, workforce training and programs such
as Reno County’s Job Incentive Program, coupled with State of Kansas
incentives, Kansas Global’s export accelerator programs and the four
designated Reno County Opportunity Zones in Hutchinson and South
Hutchinson as reasons that companies are choosing to invest in Reno
County.
Reno County has long been home to companies
like Kroger, Tyson Foods, Collins Bus, Superior Boiler, Jackson Dairy,
Cargill, Morton Salt, Haven Steel, Sonoco Papermill and Kuhn Krause.
Tyson Foods operates two locations in Reno County in Hutchinson and
South Hutchinson with nearly 550 employees, with processed meat
products. With recent investments in machinery and equipment to enhance
production, Tyson continues to be a growing employer in the market.
In
addition, Kroger operates a large warehouse and logistics operation in
Hutchinson, employing over 1,000 across their distribution, accounting
services and various divisions in Hutchinson, near the original location
where Dillon’s Grocery Stores were founded.
Other
large employers such as Kuhn Krause produce hay and tillage equipment
with manufacturing, engineering and R&D, and continue to invest in
robotic welding cells to improve efficiency. Kansas’ exemption of
business and machinery from property tax make capital investment in
equipment more affordable.
For example, ShieldAg, with
44 employees in Reno County, manufactures agricultural conservation
tillage equipment, crop care tools, grain drill enhancements, harvest
aids and belted grain conveyors and is seeing great success distributing
across the U.S., Canada, Mexico and 15 other countries.
Mike Bergmeier,
ShieldAg President, attributes a central location and robust assistance
by partners as a key to their growth.
“Our location in Hutchinson
places us in the center of our High Plains distribution network with
easy access to the greater corn belt and with efficient transportation
from our central USA steel mills and other suppliers. With financial
assistance from the KS Dept. of Ag, KS Department of Commerce and Kansas
Global’s export accelerator programs, ShieldAg has been able to expand
exports to the Eastern European countries of Ukraine, Russia and
Kazakhstan.”
Another example of recent business growth
is Kansas Protein Foods which acquired a former CHS Foods location and
brought a shuttered facility back online last year. “The City, County
and State all came together to provide resources that brought quality
jobs and superior products back to this location”, said Teufel.
Mike
Chisam, CEO of Kansas Ethanol and his leadership team saw great promise
in the available skilled workforce and a need in the marketplace. He
spearheaded the creation of a subsidiary of Kansas Ethanol to form
Kansas Protein Foods in Hutchinson in 2018.
Since then, the company has
grown to employ 35, where they produce flavored and unflavored textured
plant-based soy protein in various shapes, colors and flavors.
The
105,000-square-foot processing and warehousing operation sits on 20
acres in the industrial park in Hutchinson. Plant Manager, Buell
MacArthur said “Being geographically centered allows for favorable
transit of our major raw materials to the facility and also shipment of
our finished goods across the U.S.”
Workforce training
and readiness is a key driver of the community’s success. The Business
and Industry Institute at Hutchinson Community College recognizes the
critical training and educational needs of business today and they will
work to accommodate businesses’ educational and training needs whether
it is on site, a customized training program or a contracted program on
campus.
Co-located between Hutchinson Public Schools and the Hutchinson
Community College is the Hutchinson Career and Technical Education
Academy. HCTEA offers courses in five career fields that encompass
eighteen pathways.
from BusinessFacilities.com