Gloucester VA Links and News: Shenandoah Valley

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Friday, October 3, 2014

Governor McAuliffe Announces McKee Foods Corporation Expansion in Augusta County

McKee Foods - Little Debbie logo (Photo credit: Wikipedia)

~Company to invest $34 million and create 54 new jobs~

RICHMOND – Governor Terry McAuliffe announced today that McKee Foods Corporation will invest $34 million to expand production at its manufacturing facility in Stuarts Draft in Augusta County. Virginia successfully competed against Arkansas for the project, which will create 54 new jobs.

Speaking about today’s announcement, Governor McAuliffe said, “We are proud that for 24 years Virginia has remained a part of the success story of an industry leader producing snacks that are household names across the country. McKee Foods is a vital contributor to the economy of Augusta County and the Commonwealth. The Stuarts Draft plant, one of the most modern facilities in the baking industry, currently employs more than 1,000 Virginians in the region, and with this outstanding project will add more than 50 new jobs. Outcompeting other states and countries for high-tech manufacturing projects is key to building a new Virginia economy. My administration stands ready to help McKee Foods continue to capitalize on Virginia’s outstanding business climate, our world class workforce and our unrivaled access to global markets.”

“McKee Foods’ manufacturing operation in Augusta County has thrived for 24 years, and with this tremendous investment and expansion will continue to produce new products and increase efficiency and productivity,” said Maurice Jones, Virginia Secretary of Commerce and Trade. “The company has continued to re-invest in its Stuarts Draft operation over the past decades, and this expansion is a great testament to McKee’s commitment and success in Augusta County and in the Commonwealth.”

McKee Foods, a family bakery with annual sales of about $1.2 billion, is a privately held company based in Collegedale, Tenn. The McKee Foods story began during the height of the Great Depression when founder O.D. McKee began selling 5-cent snack cakes from the back of his car. Soon after, he and his wife, Ruth, bought a small, failing bakery, using the family car as collateral. Today, the company employs more than 5,000 people in Collegedale, Tenn.; Gentry, Ark.; Stuarts Draft, Va.; and Kingman, Ariz. It creates and produces Little Debbie® Snacks, Drake’s® Cakes, Sunbelt Bakery® snacks and cereals, Heartland® and Fieldstone™ Bakery food products.

“McKee Foods has had a longstanding commitment to manufacturing in Virginia,” said Randy Smith, vice president of Stuarts Draft operations for McKee Foods. “The business climate in the Commonwealth is very favorable, and we have found Stuarts Draft to be geographically well-positioned to serve the markets for our brands. The Commonwealth is very business friendly, and there is a wonderful population of people to recruit to work with us. We are proud to be here and to be expanding our production capacity.”

The Virginia Economic Development Partnership worked with Augusta County and the Shenandoah Valley Partnership to secure the project for Virginia. Governor McAuliffe approved a $300,000 performance-based grant from the Virginia Investment Partnership program, an incentive available to existing Virginia companies. Additional funding and services to support the company’s employee training activities will be provided through the Virginia Jobs Investment Program.

“Creating jobs for the citizens of Augusta County remains one of our highest priorities," said Larry Wills, Chairman of the Augusta County Board of Supervisors. “McKee has been a strong partner in both job creation and capital investment since 1990, and we are proud to be a part of the company's ongoing success," Wills added.

Carolyn Bragg, Board of Supervisors representative for the South River District where the plant is located, said, "McKee Foods is one of the largest employers in Augusta County and continuously gives back to the community in multiple ways, such as its annual contribution to the Governor's Food Bowl. We are excited to announce this expansion in partnership with the Commonwealth of Virginia."

Monday, December 9, 2013

Governor McDonnell Announces 102 New Jobs in Harrisonburg

English: "Shenandoah Valley," oil on canvas, by the artist William Louis Sonntag. Courtesy of the Virginia Historical Society. (Photo credit: Wikipedia)

Shenandoah Processing, LLC to Reopen Former Poultry Processing Facility, Purchase Additional $160 Million of Virginia Grown Poultry Over Three Years

Virginia’s Poultry Industry Generates More Than $1 Billion in Farm Sales, $8 Billion in Overall Economic Activity on Annual Basis

RICHMOND - Governor Bob McDonnell today announced that Shenandoah Processing, LLC, a newly-formed, locally-owned company located in Harrisonburg, will reopen a former Pilgrim’s Pride poultry processing facility and create 102 new full-time equivalent (FTEs) positions. During the three-year project, Shenandoah Processing will invest more than $2.2 million in capital improvements and purchase an additional $160 million of Virginia grown poultry from Virginia growers over the next three years. The Shenandoah Processing facility will serve the growing market for organically raised and “all-natural” chicken.

Speaking about today’s announcement, Governor McDonnell said, “Shenandoah Processing is a tremendous example of the entrepreneurial underpinnings of Virginia agriculture. Starting first as a poultry grower, Shenandoah Processing owner Corwin Heatwole is building on his experience in opening a processing facility that will provide a new market for other growers and create jobs in the Harrisonburg area. Over the four years of my administration, we’ve made sure that business owners such as Mr. Heatwole have the opportunities and environment they need to be successful and bring jobs and more economic security to the Commonwealth.”

Shenandoah Processing will provide processing services for Shenandoah Valley Organics, a poultry growing operation also started by Mr. Heatwole. In addition, the facility will provide custom processing services to individual farmers and growers who wish to have poultry prepared for retail sale. The facility will offer five end products: whole birds, boneless breasts, leg quarters, paws, and basic cut-up. The facility start-up will involve Shenandoah Processing leasing the facility and up-fitting with processing equipment. The facility will go from processing approximately 20,000 birds a day in year one to 30,000 birds a day in year two to 50,000 birds a day in year three.

“Through this project, Shenandoah Processing is adding further diversity to Virginia’s number one agricultural commodity – poultry,” said Todd P. Haymore, Secretary of Agriculture and Forestry. “The Governor’s Agriculture and Forestry Industries Development (AFID) program is once again fulfilling its mission of encouraging further development of agricultural and forestry processing facilities while providing new opportunities for Virginia’s agricultural producers. The additional capital investment and job creation at the re-started facility is outstanding for Harrisonburg. I am especially pleased about Shenandoah Processing’s commitment that practically 100% of the poultry processed at the facility will be from Virginia growers. The local agricultural economy in Rockingham and surrounding counties will benefit greatly from having this new operation come online.”

Shenandoah Valley Organics will work with poultry growers in the Central Shenandoah Valley to source their birds for Shenandoah Processing, targeting production of almost 11 million, high-quality, organic chickens in the first three years. In many instances, growers will be able to use existing poultry houses that are currently out of production in order to serve the new demand. By year three, Shenandoah Processing is expecting to require the full-time use of 106 poultry houses and provide opportunities for up to 70 farmers.

The President of Shenandoah Processing, Corwin Heatwole, said, “We believe there is a significant demand for certified organic/humanly raised chicken products. This awareness will only increase. We are excited to be bringing this project to the Valley and know it will help create a source of income for many families here in the Valley. One of the most important parts of this project is the life that will be brought back to many poultry houses that are currently out of production. We greatly appreciate the support that has been felt from locals, Harrisonburg, and the State.”

The economic ripple effect of activities at Shenandoah Processing will be substantial in the surrounding community. New poultry production will result in greater demand for equipment providers, poultry veterinarians, farm hands, feed suppliers and other operations that support the substantial poultry industry in the Shenandoah Valley. The poultry industry – chickens, turkeys, and eggs – generated over a $1 billion alone in farm sales in 2012 and contributes just over $8 billion in economic activity to the Commonwealth on an annual basis.

“Harrisonburg is excited to welcome Shenandoah Processing, LLC as the newest member of our business community,” commented Mayor Ted Byrd. “Food processing is obviously our largest industry sector in the Shenandoah Valley, and Harrisonburg is pleased to be the location of the Valley’s first commercial-scale organic poultry processing facility. There is an ever-growing demand for organic poultry products, and there is extremely limited processing capacity within the Commonwealth. Shenandoah Processing has a well-designed business plan to help meet that market need.”

Harrisonburg Economic Development Director Brian Shull added, “Shenandoah Processing will be repurposing an idle processing plant that has been off-line for many years. Bringing this facility back into production, along with significant capital investment and new job creation, makes this a very important announcement for Harrisonburg and the Shenandoah Valley Partnership.”

The Virginia Department of Agriculture and Consumer Services (VDACS) worked with the City of Harrisonburg to help make the project a reality. Governor McDonnell approved a $50,000 matching grant from the Governor's AFID Fund to assist Harrisonburg with the project. The project is receiving additional assistance through the Virginia Jobs Investment Program.

According to a 2013 economic impact study by the Weldon Cooper Center for Public Service at the University of Virginia, agriculture and forestry are two of Virginia's largest industries, with a combined economic impact of $70 billion annually. Agriculture generates more than $52 billion per annum, while forestry induces over $17 billion. The industries also provide more than 400,000 jobs in the Commonwealth.