Due to increased customer and market demand, American Foods Group, a subsidiary of Rosen’s Diversified Inc. and a major agri-business company, needed to expand their beef processing production in the United States. The company had four other facilities but a fifth one was needed. The company had never built a beef processing facility from ground up, rather they had had grown their business through successful acquisition of existing facilities. AFG tapped the Harvest Group to assist with this new initiative.
After conducting extensive market studies on herd availability, farmland access, market demand and logistics, a specific area of geographic consideration for the new greenfield site was determined. Harvest Group began with a six-state site selection search for the 500,000 square foot processing plant. The project had a capital investment of $800MM+, approximately 1,300 new jobs, and very challenging need for water, wastewater and labor.
Harvest Group initially identified 23 different sites, then employed their proven site selection process and applied their extensive experience and knowledge of each of the state’s programs. The 23 sites were then culled to 13 sites in five states. After in-person executive visits, the list was further reduced to the top three sites in two states. Harvest Group then prepared an extensive operational and cost comparison of each of the top sites including the impact of all federal, state and local economic incentive programs to provide the company a strategic and comprehensive analysis from which to make a decision. This project also had some unique challenges with wastewater. Harvest Group was instrumental in developing a strategy and approach between the company and wastewater district that was mutually advantageous.
Ultimately, American Foods Group chose Warren County, MO for their project. It is currently under construction with an operational date of 2025, and is expected to generate $1 billion in annual economic impact for the State of Missouri. The decision has had such a positive impact that the project was recently awarded the Community Impact Award in Trade & Industry Development’s 2023 Corporate Investment/Community Impact Awards for its substantial investment in Missouri.
In addition to assisting AFG in finding the site and negotiating federal, state, and local incentives, Harvest Group was instrumental in developing meaningful relationships with all the government and industry stakeholders to ensure long term project viability. The result is an incredible project, that was under budget, in just the right location, with a significant incentive package, and, most importantly, lasting, positive relationships.
“Given the complexity of this project, the results Harvest Group delivered far exceeded our expectations. They found the right site for our project that will benefit our customers for years to come.”
— Jim Rathke, Executive Vice President, American Foods Group