How Will Minnesota’s $9.5M Boost Transform Its Food Supply Chain?

January 9, 2025

Minnesota’s food supply chain is set to receive a significant transformation thanks to a $9.5 million grant from the U.S. Department of Agriculture’s Agricultural Marketing Service, in partnership with the Minnesota Department of Agriculture. This funding, distributed to 11 distinct infrastructure projects through the Resilient Food Systems Infrastructure Program, aims to enhance resilience within the state’s food production and processing systems. The initiative is part of a broader effort to build stronger local and regional food systems, create diversified agricultural markets, generate new revenue streams for small and mid-sized producers, and provide economic opportunities for local communities.

Enhancing Production Capacities

Bongards’ Creameries and Concept Processing

Bongards’ Creameries in Bongards, Minnesota, received $1,572,259.50 to purchase and install a new sliced cheese wrapper and diverter lane and upgrade existing wrappers. This investment is projected to expand the production capacity for Minnesota-made sliced processed cheese by 5.5 million pounds per year. This increase aims to meet the growing consumer demand for quality dairy products while providing new revenue streams for local dairy producers. Furthermore, it ensures that Minnesota remains competitive in the dairy industry, maintaining its status as a key player in agricultural production.

Similarly, Concept Processing in Melrose was awarded $304,780.84 to purchase and install automated milk filler systems, refrigerated milk trucks, and a walk-in cooler. These enhancements will significantly increase their capacity to package and distribute milk products, ensuring timely deliveries and reducing spoilage rates. By automating the milk filling process, Concept Processing can optimize its production efficiency, lower operational costs, and ultimately pass these savings on to consumers. This investment not only supports local dairy farmers but also boosts the community’s economy through improved job security and potential for growth in the dairy sector.

Featherstone Farm and Green Acres Milling

Featherstone Farm in Rushford received $250,535.90 to expand and upgrade its warehouses and walk-in cooler facilities. The farm is investing in a food safety-compliant wash, dry, and pack line for salad crops, returnable plastic containers, and a sanitizer machine. These upgrades will bolster the farm’s ability to aggregate, process, store, and distribute locally grown vegetables and crops more efficiently. By focusing on food safety compliance, Featherstone Farm aims to provide high-quality, traceable produce to meet the increasing consumer demand for healthy and safe food options. These advancements also facilitate better shelf life for fresh produce, reducing waste.

Green Acres Milling in Albert Lea was granted $1.5 million to acquire cleaning and kilning equipment for a new innovative oat milling facility. This facility aims to bridge a supply-chain gap for oat processing infrastructure, working with over 100 local farmers within the “Oat-Shed” to offer fair pricing and ensure a steady market for high-quality oat groats. The new equipment will enhance the efficiency and quality of oat processing, enabling Green Acres Milling to produce superior oat products that meet stringent market requirements. This investment supports local farmers by creating a reliable market for their oats and bolstering the regional agricultural economy.

Supporting Local and Cultural Food Production

Hmong American Farmers Association and Hoyo

The Hmong American Farmers Association in Hastings was awarded $1,680,351.38 to build a new processing, storage, and kitchen facility on their incubator farm. This facility will be climate-controlled and accessible year-round, allowing the association’s 104 Hmong farmer-members to process fresh produce and capitalize on winter sales opportunities. This project aims to harness the rich agricultural knowledge within the Hmong community, providing them with the resources needed to thrive in modern agricultural markets. The facility will enable year-round productivity, helping farmers extend their growing season and maximize their revenue potential.

In Minneapolis, Hoyo received $668,034.70 to develop a new food production facility aimed at creating employment for Somali immigrants and meeting local cultural food demands. This project will enhance Hoyo’s production capacity significantly and potentially increase it fivefold in the long term. The new facility will allow Hoyo to produce a wider range of culturally specific foods that cater to the Somali community, ensuring that traditional flavors and culinary practices are preserved and accessible. This initiative not only supports the local economy by creating jobs but also enriches the cultural diversity of food offerings within the community.

Manna Food Cooperative and Midwest Processors

Manna Food Cooperative in Detroit Lakes was granted $304,198.19 to construct a new commercially licensed processing kitchen, purchase processing equipment, and expand food-grade storage. This will enable local producers to lightly process and store fruits and vegetables for wholesale buyers, particularly schools. By providing a facility for local producers to process their products, Manna Food Cooperative fosters local entrepreneurship and supports the farm-to-school movement, ensuring that children have access to fresh, locally sourced produce. This initiative is expected to bolster the local food economy by allowing small producers to scale their operations and reach wider markets.

Midwest Processors in Pierz was allocated $530,483.56 to invest in milling and screening equipment, conveyors, temporary storage, and integrated packaging. These upgrades will enhance the processing of sunflower meal into high-protein meal and open access to premium markets for local producers. By improving the processing capabilities, Midwest Processors can ensure that locally grown sunflower seeds are efficiently transformed into high-value products that meet the demands of both local and international markets. This investment supports producers in diversifying their product offerings and tapping into new revenue streams, contributing to the overall resilience of the agricultural sector.

Expanding Storage and Distribution Capacities

Red Lake Band of Chippewa Indians and Sno Pac Foods

The Red Lake Band of Chippewa Indians received $872,410 to expand their food processing capacities for new wholesale and retail opportunities of locally grown produce. This project includes constructing a new processing facility, acquiring necessary equipment, and obtaining food safety consultation and training. By expanding their processing capabilities, the Red Lake Band aims to increase the availability of high-quality produce, providing greater food security for the community. The investment in food safety training ensures that the produce meets industry standards, opening up opportunities for wholesale and retail markets that were previously inaccessible.

Sno Pac Foods in Caledonia was provisioned $1,572,500 to build a new cold storage facility. This facility will store Sno Pac’s organic fruits and vegetables, as well as provide storage for other agricultural companies, thereby addressing a critical need for cold storage in southeastern Minnesota. The new cold storage facility will significantly expand Sno Pac Foods’ capacity to preserve organic produce, ensuring year-round availability and reducing post-harvest losses. This investment not only supports Sno Pac Foods but also benefits other local producers by providing access to state-of-the-art storage facilities that can extend the shelf life of their products.

The Food Farm

The Food Farm in Wrenshall was awarded $222,006.22 to enhance its current storage facilities by constructing a cooler and packhouse, installing new equipment, and purchasing a larger delivery vehicle. These upgrades will enable the farm to expand its markets and provide supply chain capacity for nearby producers. By improving their storage and distribution capabilities, The Food Farm can ensure fresher produce reaches consumers and supports the growing demand for locally sourced food. The new delivery vehicle will also enhance the farm’s ability to reach farther markets, increasing their customer base and overall profitability.

The enhancements to The Food Farm’s storage and distribution infrastructure are expected to have a ripple effect throughout the local agricultural community. By providing additional capacity for nearby producers, the farm can support small and mid-sized operations in their efforts to meet market demands, ensuring that locally grown produce remains competitive. This project is a key component of a broader strategy to build a resilient and sustainable food system that can adapt to changing consumer preferences and environmental challenges.

Technical Assistance and Long-Term Benefits

Resilient Food Systems Infrastructure (RFSI) Program

In addition to the financial support, the Resilient Food Systems Infrastructure (RFSI) Program also offers free technical assistance until Spring 2027 to producers, businesses, cooperatives, and other organizations involved in the middle of the food supply chain in Minnesota. This technical assistance focuses on supply chain coordination, food business development, market development services for local and regional food products, and consultation on grant applications and administration. These services aim to support the effective implementation and sustainability of the funded projects, ensuring long-term benefits for the food systems.

The technical assistance provided by the RFSI Program is designed to support producers and businesses at various stages of the supply chain. This comprehensive approach ensures that all aspects of the food system are strengthened, from production to distribution. By offering expert guidance on supply chain coordination and market development, the program helps local producers and businesses navigate the complexities of the food industry. This support is crucial for ensuring that the investments made through the grant program translate into tangible, lasting improvements in Minnesota’s food supply chain.

Building a Robust and Resilient Food System

Minnesota’s food supply chain is set to undergo a significant improvement, thanks to a $9.5 million grant from the U.S. Department of Agriculture’s Agricultural Marketing Service. This grant, distributed in partnership with the Minnesota Department of Agriculture, will support 11 distinct infrastructure projects under the Resilient Food Systems Infrastructure Program. These efforts aim to bolster the resilience of the state’s food production and processing systems.

The initiative is part of a larger strategy to create robust local and regional food systems. By doing so, it will help diversify agricultural markets, open up new revenue opportunities for small and mid-sized producers, and offer economic benefits to local communities. These goals align with a broader national vision to support agricultural producers and ensure food security. The funding will aid in enhancing the infrastructure needed to withstand disruptions, thereby providing a more stable food supply chain for Minnesota residents and supporting the local economy.

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