Gold'n Plump to spend $38 million to expand Arcadia operations

FoodProcessing.com
01/06/2006

St. Cloud, Minn.-based Gold’n Plump Poultry announced Jan. 4 that it will update and expand its production complex and current operations in Arcadia, Wis.

The $38 million expansion is scheduled to begin early in 2006 with completion expected in 2008. The project includes:

• Increasing production capacity by 31% at the current complex;
  
  
• Updating processes to improve efficiencies;
  
  
• Adding 50 full-time employees;
  
  
• Building a larger, state of the art hatchery in the area ;
  
  
• Adding 36 breeder and grower barns in southwestern Wisconsin;
  
  
• Increasing annual corn and soybean meal purchases.

The company spent 6 months conducting an expansion study to determine how to prepare for future growth, improve efficiencies and upgrade current infrastructure, support an increase in demand for premium branded chicken products and improve customer’s experience through technology and service. The 31% projected volume increase that can be accomplished at the Arcadia facility at the $38 million capital investment level was a compelling factor in the decision-making process. Other factors contributed as well, such as attractive state incentives, access to raw materials for producing feed, labor availability, grower contract availability and community interest, all of which contribute to the company’s ability to remain cost competitive.

The company met with state officials from Minnesota and Wisconsin. Production complexes in both states were considered for this expansion, and incentive packages presented from both states were taken into consideration. “It was determined that the Wisconsin facility has the most potential for improving efficiency and increasing production quickly,” said Mike Helgeson, CEO of Gold’n Plump, “Therefore, choosing our Wisconsin operations for this expansion made the most sense strategically for the long-term success of the company, our customers, our grower partners and our employees.”

The next steps in the expansion process include finalizing and announcing the location of the new hatchery, creating the internal team to lead and manage the expansion project, and soliciting and interviewing new contract growers. Gold’n Plump currently has over 250 breeder and grower barns through contracted agreements with family farmers in central Minnesota and southwestern Wisconsin. This expansion will require 36 new barns in Southwestern Wisconsin.

“We appreciate the efforts of and the opportunities provided by both states. We are excited about how this expansion will assist us in meeting the needs of our customers today and help pave the way for future growth,” added Helgeson.

Gold’n Plump Poultry is a family-owned provider of premium chicken products to retail, deli and foodservice customers throughout the Midwest and in other parts of the country. The company employs about 1,600 people and contracts with more than 250 growers in Minnesota and Wisconsin. For more information, visit www.goldnplump.com.