Farm Progress

Ag companies receive $550K to grow value-added products

Food and Agriculture Investment Fund seeks to help accelerate development and create jobs.

July 25, 2018

4 Min Read
MORE FRUIT: St. Julian Wine Co. of Paw Paw will use its grant to install a chilling system, which will add 132,000 gallons to its current capacity.chengyuzheng/getty

Five food and agriculture projects in Michigan will get a boost, thanks to grants from the Food and Agriculture Investment Fund.

The Michigan Commission of Agriculture and Rural Development voted to approve the funds to help grow companies focused on processed fruit, dairy and soybean operations, as well as support the expansion of consumer-demand driven, value-added Michigan products. 

“Michigan’s place as a national leader in the food and agriculture industry is undeniable,” says Gordon Wenk, director of the Michigan Department of Agriculture and Rural Development. “Not only do we produce some of the most diverse and highest-quality products, but we’re also quick to adopt new technology and respond to consumer trends around the world. These grants are an effective way of accelerating development and creating jobs that may otherwise take years or not happen at all.”

The projects follow:

• Sugar Free Specialties LLC, DBA Dr. John’s Candies of Comstock Park, will receive a $75,000 performance-based grant toward the purchase and renovation of manufacturing and office space to launch the world’s first natural, sugar-free lollipop, branded Healthy Sweets.  Dr. John developed these sugar-free lollipops and hard candies with a low glycemic index and without artificial colors, flavors, sweeteners or major allergens. The lollipop contains 20% of FDA’s daily recommended fiber requirement, as well as essential vitamins, and a portion of sales are donated to nonprofit children’s cancer organizations. Capital investment for this project is over $2.12 million, with 18 new jobs anticipated. The investment is contingent on the approval of additional state and local incentives in support of the project.

• S&F Foods of Romulus will receive a $75,000 performance-based grant to expand its production and freezer storage capacity to meet the demand for its first proprietary retail brand, Gluten-Free Delights. The project requires a $1.4 million capital investment, which would add 27,000 cubic square feet of dedicated gluten-free production, cold storage space and an extruding line. The project will lead to the creation of 10 new jobs and increase capacity of the Gluten-Free Delights private label and co-manufacturing production by 20%.   

• Quality Roasting LLC of Caro will receive a $75,000 performance-based grant to support the construction and operation of a new 33,000-square-foot soybean processing facility in Indianfields Township, near Caro. Quality Roasting is a joint-venture formed by Quality Roasting Inc. and the DeLong Co. Inc. to process soybeans into crude soybean oil and Exceller Meal, an expelled high-bypass soybean meal that uses no chemicals or solvents in the manufacturing process. Quality Roasting will use about 2.2 million bushels of soybeans, or about 2% of Michigan’s annual soybean yield. The project will require $10 million in investment and is expected to create eight jobs. 

• Michigan Milk Producers Association of Novi will receive a $200,000 performance-based grant for a new 7,50- square-foot addition to the main processing area at its facility in Constantine, as well as the installation and operation of new milk concentration equipment, processing and storage vessels. Wastewater treatment upgrades are also an important component to this project. These investments will allow MMPA to increase milk processing capacity by 1.3 million pounds per day, helping MMPA manage the increasing milk production in Michigan through manufacturing of new value-added products. This project will assist in consuming a portion of the excess milk being produced in the State of Michigan, which is depressing commodity markets. The project will require a capital investment of $24 million and will create 11 new jobs.

• St. Julian Wine Co. of Paw will receive a $125,000 performance-based grant to increase tank capacity by installing a new chilling system that is more efficient and environmentally friendly. The project will lead to the installation of 11 new tanks, allowing St. Julian to add 132,000 gallons to its current capacity, which will process roughly 725 tons of additional fruit. As a part of its growth strategy, the company plans to add additional capacity every year for the next five years, resulting in dramatic increases in the amount of Michigan fruit that will be contracted and processed. For nearly 100 years, St. Julian Wine Co. has been owned by the same family, with the same commitment to using exclusively Michigan-grown fruit. St. Julian Wine will invest over $1.48 million in equipment and facility upgrades, and expects to create three new full-time positions. 

“We hold these projects up as great examples of what the Food and Agriculture Investment Program was designed to do: accelerate the growth of Michigan food and agricultural companies,” says Peter Anastor, director of MDARD’s Agriculture Development Division. “The support provided to grow food and agriculture businesses of all sizes will allow them to better compete in the agricultural marketplace.”

The Food and Agriculture Investment Program provides financial support for food and agriculture projects that help expand food and agriculture processing to enable growth in the industry and Michigan’s economy. Projects are selected based on their impact to the overall agriculture industry and their impact to food and agriculture growth and investment in Michigan. 

Source: MDARD

Subscribe to receive top agriculture news
Be informed daily with these free e-newsletters

You May Also Like