Strong food processing sector starts with quality soil
By Sue Gleason Thrive
EDITOR'S NOTE: This is the second article in an eight-part series highlighting eight strong opportunities to grow the Madison Region's economy in ways that preserve and enhance quality of life. The Assets and Opportunities Initiative, or A&O, was launched by Thrive, the economic development enterprise for the eight-county region, with support from the Madison Community Foundation and conducted by Vandewalle & Associates with input from state and regional resources and experts.
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As with all eight opportunities that surfaced in Thrive’s Assets and Opportunities Initiative (A&O), agriculture and food are not new ideas for the region. What is new is capitalizing on them more than we do. Our region’s opportunities in food production and food processing lie in scaling up what is already occurring, increasing the processing capacity in support of entrepreneurs who can create higher value-added products, and tackling the movement and distribution of food throughout the region.
Most people know that we have a rich agricultural history in the region, but they may not know that we are truly blessed with rich soils; our prime agricultural soils are among the best in the world. These soils help us consistently lead the state in the production of commodities. In the production of corn for grain, for example, the Madison Region has four of the top five producers in the state. Overall, agriculture is a $9 billion industry in the region.
Our soils give rise to an array of niche agricultural products. The eastern and southern parts of the region have seen major investment in our ethanol and biodiesel facilities. Our bioenergy economy includes public and private research and commercialization facilities, taking us into the next generation of the bioeconomy.
Food processing in the region yields an extraordinary breadth of value-added products. Our dairy processing includes milk and award-winning cheeses. We process meats, beverages, grains and flour, and feed for animals. Canneries for our vegetable farming have long been a part of our communities like Seneca, Delmonte and Lakeside in Dodge, Columbia, Rock and Sauk Counties. Other food products range from national brands like Frito Lay in Beloit to smaller producers like RPs Pasta in Madison. We also have a growing niche market in the chocolate and confection industries. Taken together, it is apparent that food processing is a strength that touches every corner of the region.
Build on to these assets our unique retailers and research facilities. Our direct-market farmers and local food pioneering efforts are known throughout the country. We have the highest concentrations of farmers’ markets and Community Supported Agriculture (CSA) farms in the country. Leading research facilities are a key piece of this economic infrastructure supporting food production and processing enterprises. Taken together, these assets could help us to further scale-up our regional food economy — production and processing — both for large-scale outlets and for smaller, specialty niche markets.
Now add to all this the fact that the Madison Region is central to both coasts and has a growing population of over 60 million people within a day’s drive. Couple this with the changing picture of today’s food consumer: “local” is the new organic; consumers are concerned about food safety and security, and want to know where their food comes from. Freshness is important. Many consumers are shifting their values toward a reliable, sustainable food system at a time when fuel costs are on the rise, increasing the cost of foods coming from around the globe. Chicagoland grocers are clamoring for more Wisconsin products.
We may take it for granted, but we are a food region, and these changing demographics show how important this industry and its potential are to every corner of our region. Locally produced means local jobs. This is an industry we can grow, and this is not just about farmers and niche market chefs. This is an opportunity for food packaging and machinery fabrication for food processing.
Thrive and its regional partners are working with this particular area of opportunity across food production, processing and distribution systems, building capacity for scale. One example of this is the idea of building regional incubators for food processing start-ups (which several counties are discussing) by partnering with the UW Extension Agriculture Innovation Center, the Department of Commerce and DATCP to bring together more than 90 community leaders for a Community/Processing Incubator Kitchen meeting in Baraboo last month. This niche incubator approach is gaining momentum as several communities consider this a perfect alignment of economic development and quality of life.
Focusing on growing our food processing economy fits our region and the market. The benefits are clear and shared. Food processing businesses provide job opportunities from entry level to skilled laborers and managers. It leverages our R&D capacities at the university, our existing trades, grows new markets for our farmers, and helps retain productive agricultural land. Not to mention we can enjoy more locally produced foods.
Madison Region Food Production, Processing and Distribution Strengths:
• The entire supply chain exists
• Renowned dairy, animal and food science expertise
• World-class soils and water capacity
• Strong transportation infrastructure and logistics expertise to get products to market
• Our metal fabrication and processing equipment skills and companies have been here since the beginning of the beer, dairy and cheese industries
• We have leading food packaging businesses and marketing firms
• Strong value-add agriculture like whey processing or specialty cheeses
• We are a pioneering and prototyping center for regional foods.
Coming in May:
Biomedical and health care
