Lamb Weston has enjoyed success with sweet potatoes and other vegetables for more than 60 years. A subsidiary of Fortune 500 ConAgra Foods, the company produces quality specialty potatoes for restaurants and food retailers. Lamb Weston sells products in more than 100 countries on all seven continents. Sweet potatoes are but one item in the company’s inventory of potato products. With consumer demand for sweet potatoes growing rapidly, Lamb Weston knew the time was ripe to build a state-of-the-art, environmentally efficient facility to continue its progress as an industry leader. Lamb Weston needed a location ideal for growing and processing high-quality sweet potatoes. With agriculture and infrastructure strengths, Louisiana cultivated Lamb Weston and its plans for a landmark facility.
The Challenge
Despite a volatile economy, sweet potatoes experienced a 50 percent jump in per capita consumption from 2000 to 2011. Sweet potato fries are now the fastest-growing side order in the food-service industry today. According to the Center for Science in the Public Interest, sweet potatoes are the No. 1 super food for better health. High in vitamins A and C, sweet potatoes are considered among the healthiest vegetables and are a good source of fiber, with no fat or cholesterol.
Tapping the company’s leadership in food quality, processing and innovation, Lamb Weston recognized an opportunity to match its capabilities with increasing consumer appetites for sweet potatoes. With that in mind, Lamb Weston planned a large-scale facility dedicated to high-quality, frozen sweet potato products – a plant that would establish new quality standards for processing and packaging.
“This significant investment is indicative of the big opportunity we see in our potato platform,” said Gary Rodkin, CEO of ConAgra Foods.
Louisiana was identified as a potential site for the project based on its ability to grow high-quality sweet potatoes and its strengths in transportation, water supply and workforce characteristics.
“We’ve learned from our extensive experience with sweet potatoes that they require special handling and processing,” said Jeff DeLapp, then president of Lamb Weston.
The Solution
Louisiana officials, knowing the state could provide the right environment for Lamb Weston’s growth, developed a customized incentive package. State legislators from Northeast Louisiana worked with Louisiana Economic Development to demonstrate the viability of a site in Delhi, La.
Using Louisiana’s Mega-Project Development Fund, LED proposed a performance-based grant of up to $37.4 million toward plant processing equipment and site infrastructure. Additionally, the company took advantage of Louisiana’s Industrial Tax Exemption program and LED FastStart™, a workforce development program ranked No. 1 in the U.S. byBusiness Facilities magazine.
FastStart provided more than 16,500 hours of customized workforce recruitment, screening and training to Lamb Weston during the project’s initial phase, with additional services slated as an expansion comes online in 2014.
“FastStart’s capabilities should clinch decision making for firms looking for a place to expand or create new operations,” said Dan Downard, director of human resources for ConAgra Foods Lamb Weston. “[FastStart can] make that decision-making process much easier for employers if they understand the value that this program can provide to them.”
Economic incentives weren’t the only elements crucial to the Lamb Weston project. The company struck a research partnership with the LSU AgCenter Sweet Potato Research Station, the only facility of its kind devoted to sweet potato development. An important function of the station is producing virus-free foundation seeds for farmers. Other research efforts to promote best production and pest control practices will sustain a profitable crop for farmers and the company.
“ConAgra Foods Lamb Weston’s decision means that we can use our homegrown commodities to create good jobs for our people and produce quality products for the rest of the country,” said Gov. Bobby Jindal. “This win shows that we must not underestimate the quality of our people or our products. Indeed, we can compete with anyone in the world.”
“Lamb Weston is already the leading provider of frozen sweet potato products to restaurants and retailers around the world, and we look forward to continuing to grow that leadership position in the market with this significant investment,” DeLapp said. “Not only is the state of Louisiana known for its high-quality sweet potatoes, it offers a great environment for business and a skilled workforce. Gov. Jindal and LED have gone out of their way to make this plant possible, and we are grateful for their support.”
Lamb Weston also received support from the local community – the City of Delhi expanded its sewer and water capacity to accommodate the facility, and Richland Parish contributed funding toward an access road and other site infrastructure.
The Results
In August 2009, the company agreed to build the first large-scale processing facility in the world dedicated to high-quality, frozen sweet potato products. The new Delhi facility created 275 new direct jobs, with future expansion projected to create 500 jobs with an average annual salary of approximately $35,000, plus benefits.
Phase One included a $156 million capital investment and more than 1,050 direct and indirect jobs. Phase Two, scheduled to be completed February 2014, will represent an additional $55 million to $100 million investment. Once both phases are complete, the facility will represent a total capital investment of $211 million to $256 million.
An economic impact analysis conducted by LSU estimates the completed site will inject $2.1 billion to $2.4 billion in new state economic output through 2025. In addition to direct jobs, LSU estimates that the plant will generate more than 1,400 indirect jobs and $70 million to $81 million in new state tax revenue, excluding increased corporate income taxes. As a result, ConAgra Foods Lamb Weston will be one of Louisiana’s Top 100 economic-driver firms based on direct and indirect job impact.
“This new processing plant is uniquely designed to enhance the quality of our sweet potato products in the most efficient way, which allows us to continue bringing value to our customers,” said DeLapp. “Those customers, including some of the largest quick-service restaurant chains, seek consistent, high-quality sweet potato fries and other sweet potato products. We look forward to meeting the strong and growing demand for these potato products.”
The facility followed the Leadership in Energy and Environmental Design, or LEED, standards for environmentally sustainable construction. The U.S. Green Building Council certified the Delhi facility as a LEED Platinum project, making it the first frozen food manufacturing plant in the world to earn that certification. Lamb Weston installed energy-saving equipment to make the site 40 percent more efficient than a conventional plant.
The plant’s sustainable building design provides multiple environmental, economic, health and community benefits, including water conservation and a substantial reduction in energy usage.
In August 2011,Food Processing magazine recognized the Lamb Weston Delhi site as its 2011 Green Plant of the Year.
“ConAgra Foods’ choice of Louisiana is part of an emerging trend in which Louisiana has become increasingly successful at attracting value-added agribusiness projects,” said LED Secretary Stephen Moret. “ConAgra Foods will capitalize on Louisiana’s strength in the agricultural sector and leverage those strengths to create new products that are appealing to the marketplace. We will continue to aggressively and strategically pursue value-added agribusiness projects, as well as others in emerging growth sectors that will help position Louisiana for diversified, sustainable growth.”
ConAgra Food Lamb Weston’s facility joins a growing list of value-added business successes in Louisiana. Recent business development projects won by Louisiana are resulting in significant job growth and billions of dollars in capital investment all across the state. These wins are fueling hundreds of millions of dollars in new sales for Louisiana small businesses and continuing the economic growth of the state. Visit the LED News webpage for updates about the new Louisiana.
