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Opportunities in Louisiana for Expansion/Relocation, Small Businesses & LA Business Leaders Expansion/Relocation Small Businesses LA Business Leaders

Agriculture, Food & Wood Products

Industry Overview

Agriculture is a multibillion-dollar industry for Louisiana, creating jobs and generating income in every region of the state. The state's agricultural economy is complex and comprised of many segments including animal, fishery and plant commodities, packaged food processing and related businesses. One third of U.S. seafood comes from Louisiana, making the state the No. 1 seafood producing state in the nation. Louisiana is also among the ten largest producers in the U.S. of cotton, sugarcane, yams, rice and pecans. Food processors throughout the state enjoy access to an intermodal transportation infrastructure that provides a competitive advantage for the industry. In addition to convenient, well-developed air, rail and interstate systems, the state's ports provide exceptional facilities for food-based imports and global exports so that goods can be moved quickly and efficiently.

Agribusiness

Throughout Louisiana's history, agribusiness has been a significant contributor to the state's economy. Abundant rainfall and a mild climate give it one of the fastest tree-growing cycles in North America. The state has 14 million acres of hardwood and softwood forests that support a large pulp and paper industry, as well as production of pine plywood and lumber for construction. Louisiana is also a major manufacturer of linerboard, Kraft paper and fine papers. Historically, Central Louisiana has been a leader in the agricultural and forestry industries.

Part of Louisiana State University's School of Renewable Natural Resources, the Louisiana Forest Products Development Center conducts research to identify ways the forestry industry can diversify and compete in the 21st century. Although the value-added income to the forestry sector has averaged about 72 percent of the entire income associated with the industry, higher than any other agricultural industry, there is still room for improvement.

The cotton industry is another pillar of Louisiana's agribusiness. The first of two major textile mills producing cotton yarn was completed in December 2009 in Southwest Louisiana by Zagis USA. The company will process Louisiana cotton into yarn and fabrics before shipping to its customers. In the past, cotton harvested in Louisiana has mostly been shipped out of state in its raw form. Zagis USA cited several reasons for selecting Louisiana, including access to raw material, proximity to export ports and strategic freight lanes, low interest costs, state incentives and reliable power at a stable, competitive cost.

In 2009, ConAgra Foods Lamb Weston committed to constructing the world's first large-scale processing facility dedicated to frozen sweet potato products in Delhi, La. The facility will capitalize on Louisiana's 15,000 acres dedicated to sweet potato growth to create new value-added products.

Louisiana's agribusiness industry also produces value-added resources, such as poultry, sugarcane, rice and soy beans. Animal production enterprises also range from poultry to beef, and timber industries produce a variety of wood and wood products. The state even sees hundreds of millions of dollars generated from farming the waters - Louisiana continually brings in crawfish, catfish, crabs, shrimp, oysters and other aquaculture.

Biofuel

As the world continues its search for alternative energy, the development of biofuels is gaining momentum. Louisiana's existing agricultural and energy industries make the state a natural location for biofuel research, development and production.

Recently, Dynamic Fuels LLC, a joint venture between Tyson Foods and Syntroleum Corp., chose to locate a first-of-its-kind facility to produce high-quality, renewable diesel and jet fuels from animal fats in Geismar, La. Unlike the ethanol and biodiesel industries, which use food ingredients like corn and soybean oil to produce fuel, the Dynamic Fuels project will primarily use nonfood grade animal fats produced or procured by Tyson Foods, such as beef tallow, pork lard, chicken fat and greases. Production is scheduled to begin in 2010.

Researchers at the LSU AgCenter's Audubon Sugar Institute are combining their knowledge of sugarcane processing and chemical engineering to develop a synergy between sugar production and ethanol. Some of the same process technology that the industry uses for producing ethanol from corn can be used to produce it from many other raw materials, including sugarcane and similar plants.

Seafood

It's not surprising that the state that gave the world crawfish étouffée, shrimp Creole and oysters Rockefeller would have a strong seafood industry. Louisiana seafood makes up about a third of all domestic seafood production. The industry's wild-caught harvest includes oysters, crab, shrimp, menhaden, redfish, shark, speckled trout and butterfish. Farmed seafood, including crawfish and catfish, are harvested from specially developed freshwater farms.

Louisiana's fishing industry is the second largest in America, behind only Alaska. Louisiana produces 20% to 25% of the total domestic seafood in the lower 48 states and 75%of all seafood harvested in the northern Gulf of Mexico. About a third of the nation's oysters come from Louisiana's waters, representing more than any other state. The state is also a major producer of shrimp.

Louisiana leads the nation in crawfish production, with more than 90% of the domestic crop. Louisiana has more than 1,000 crawfish farmers and more than 800 commercial fishermen who catch wild crawfish. The combined average yield of Louisiana farm-raised and wild crawfish is between 75 and 105 million pounds a year, with an economic impact of more than $120 million for the state of Louisiana.

Food Processing/Specialty Food Products

From gumbo and red beans & rice to jambalaya and meat pies, Louisiana is famous for its food. The state produces a regional cuisine that enjoys worldwide popularity, and Louisiana's food processing industry is thriving today as it has for generations.

The state's abundance of fresh, high-quality local commodities - seafood, sugarcane, sweet potatoes, rice, sorghum, strawberries, citrus and other fruit - supports Louisiana's food processing companies.

The LSU AgCenter supports a research program that helps keep the Louisiana dairy industry surviving and thriving. In 2007, Louisiana had 207 dairy operations that contributed nearly $200 million to the state's economy.

Food processers also benefit from Louisiana's unparalleled transportation and distribution infrastructure. In addition to convenient, well-developed air, rail and interstate highway systems, Louisiana's ports provide an accessible stream of raw materials for food processors. The bulk of major goods, such as food oils, grains, meat and seafood, vegetables, coffee and tea are transported through Louisiana's major waterways and ports.

Coca-Cola® recently selected Louisiana to locate its regional production and distribution hub. The new facility in Baton Rouge will supply Coke, Diet Coke, Sprite, Dasani Water, POWERade and VitaminWater to Coca-Cola bottlers throughout Louisiana and neighboring states. A number of bottled water processors take advantage of the pure artesian water flowing from aquifers across the state.

Small food processing startups can benefit from local food manufacturing incubators that allow food entrepreneurs access to additional safe, sanitary space to produce their products. The LSU AgCenter provides consultation on a variety of concerns and works through research contracts to help develop new food products and processes. LSU's Department of Food Science is dedicated to meat, poultry and seafood processing and packaging research, working with area food processors on vital research and development, workshops, training classes and in-plant assistance. A well-equipped food processing pilot plant is available for industry use to develop or evaluate food products. The Department of Food Science in conjunction with the FDA and Food Processors Institute also offers a four-day Better Process Control School for supervisors of food canning plants.