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Food processing and our future
The Gazette Opinion Staff
Dec. 4, 2009 11:27 pm
“One thing leads to another.” This common expression, defined generally as how one event sets things up for another, can lead to either bad or good results.
When it comes to the Cedar Rapids grain-processing industry, most outcomes have been exceptionally good. And the promise of more to come bodes well for our community and the region.
Even so, this group of industries in our own backyard sometimes seems not fully appreciated compared to high-tech engineering leader Rockwell Collins and financial services giant AEGON USA - Cedar Rapids' largest private employers.
Nonetheless, our ever-evolving food-processing and bioproducts industry has an immense impact on this community - from national giants Cargill, Quaker Oats, General Mills and Archer Daniels Midland to companies with smaller employment levels such as Diamond V Mills and Genencor International that develop and produce innovative new products.
Just consider some of the local numbers generated by this industry, which took root in 1873:
l 4,000 direct jobs with average annual pay of $85,000, plus another 8,000 indirect jobs, many requiring advanced degrees and skills.
l Enough corn processed in two days to fill Hawkeye Carver Arena.
l 20 percent of the world's oat crop processed annually
l Nearly $1 billion in new plant construction and equipment since February 2003.
When ADM's new dry-grind ethanol plant is operational next year, Cedar Rapids will officially become the largest processor of corn and the No. 1 producer of ethanol in the world - yes, all of planet Earth - according to a recent study by the University of Iowa's Tippie College of Business
These numbers reflect a huge impact on our regional job market and economy, including farmers who supply grain for these plants.
And there's likely much more to come if one good thing keeps leading to another.
Consider a recent example: French company Lesaffre et Cie, entered a joint venture with ADM to produce yeast at a Red Star facility located nearby. That, in turn, led Bio Springer, a Lesaffre subsidiary, to locate an adjacent plant that will produce yeast extract from Red Star's yeast - which also will set up expansion at Red Star.
Similarly, the UI study found that byproducts and waste from other local plants could help economic development recruiters attract new industries here. For instance, ethanol production also yields dried distillers grains, a high-protein substance that could be converted to help feed people in poorer nations. That also could help appease well-intended critics who question using so much corn for ethanol rather than food.
One good thing can indeed lead to another and another if we embrace and explore the possibilities.
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