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Scattered U.S. Activity

Food and beverage production occurs throughout the United States, and new investment activity is widely scattered. Most expansions have occurred in regions close to farming areas in California, the Midwest and the South.

California is the nation's top agricultural state and the largest U.S. food-processing employer with about 184,000 jobs, according to the state's Office of Economic Research. California ships about $50 billion worth of food products each year.

California is the top producing state for many fruit and vegetable crops, and the processing of fruits and vegetables is especially significant in the San Joaquin Valley, Sacramento Valley and Central Coast. For example, Campbell Soup and La Victoria Foods use locally grown tomatoes and other vegetables for their soups, "V-8" juice and salsa. In addition, more than 65 percent of U.S. wine production employment is in California.

Europe's Top 10 Countries for New or Expanded Food Processing Plants 1999 January-June 2000 France 19 9 UK 13 4 13 4 Russian Federation 9 4 Poland 9 1 Spain 7 4 Belgium 7 1 Austria 6 - Germany 5 - Hungary 5 - Ireland 2 3 Others 15 13 Total 97 39 Source: Ernst & Young, London office.

Major food processing companies that have recently expanded operations in California include Blue Diamond, Land O' Lakes, Campbell Soup, Frito-Lay, Mission Foods and Dole Vegetables. On a much smaller scale, Amber Foods recently doubled its fruit salad processing plant in Dinuba, which has 65 employees.

Chicago is the hub of Midwest food processing activity, with the largest industry cluster in the United States. However, new investment is largely taking place in smaller Midwest communities.

Sargento is expanding its cheese food plant in Kiel, Wis., adding 70 jobs this year. Louis Gentine, chairman and CEO, said Sargento looked at a number of out-of-state options but decided to stay in Wisconsin because of its satisfaction with the current work force and the support the company received from the state.

Prairieland Processing is tripling the size of its beef plant in Arkansas City, Kan. The $90 million project is expected to add more than 450 jobs.

In Springfield, Mo., Kraft is building a 100,000-sq.-ft. (9,290-sq.-m.) warehouse to store dry grocery products produced at a nearby plant. Kraft also converted an existing 55,000-sq.-ft. (5,110-sq.-m.) warehouse to a refrigerated product storage area.

In the southern states, Jimmy Dean Foods is growing its Florence, Ala., production plant and adding 50 jobs. Kraft has announced a second expansion of its Winchester, Va., plant that makes Oscar Mayer Lunchables and Capri Sun juice drinks.

Hershey Foods has leased a 404,000-sq.-ft. (37,532-sq.-m.) distribution facility in Cobb County, Ga., near its current warehouse. The two facilities northwest of Atlanta will combine to serve seven Southern states. Hershey is also opening a 1 million-sq.-ft. (92,900-sq.-m.) warehouse in its hometown of Hershey, Pa., to increase its overall distribution capacity.