Food Processing and Manufacturing in Kansas

Department of Commerce

FRESH FROM THE

Food Processing and Manufacturing in Kansas

Kansas is a culinary masterpiece providing a plethora of sustainable quality ingredients it takes to feed the world.

We’ve always been known for our robust agriculture and food industries. Commonly referred to as, “The Breadbasket of the World,” Kansas has nurtured this reputation by consistently ranking No. 1 for wheat production in the United States. In addition, we are one of the top producers of grain sorghum and a variety of other commodities.

Home to a one-of-its-kind milling science program and a network of higher education resources, Kansas gives companies access to a bountiful workforce trained to add zest to their operation.

No matter the ingredient a company needs for their secret sauce, it can be found in the Kansas food-value chain, and chances are one of our 15,000 agricultural businesses can provide it.

Kansas food companies range from small, family-owned operations to large, multinational corporations and headquarters, all of which have found the economic benefit as they feed the world from Kansas’ world-renowned logistics and distribution infrastructure.

If you are looking to manufacture quality food products quickly and efficiently from a variety of materials, look no further than our pièce de résistance of food manufacturers bringing together families, friends… and you!

PET FOOD MANUFACTURERS IN THE KC ANIMAL HEALTH CORRIDOR REPRESENT

61%

OF THE TOTAL PET FOOD SOLD IN THE UNITED STATES 5

Country Crock - New Century, KS

2 � Kansas Department of Labor 2020, � Labor Market Information Services, � Kansas Wage Survey 2019, � US Census Bureau 2019, � Kansas Department of Agriculture

Mars Wrigley Plant - Topeka, KS

Kellogg’s Plant - Kansas City, KS

Tippin’s Pies Plant - Kansas City, KS

FOOD MANUFACTURING IN KANSAS MAKES UP

KANSAS FOOD MANUFACTURING HAS AN ECONOMIC IMPACT OF

21%

$5.2 B

OF THE STATE’S TOTAL MANUFACTURING INDUSTRY

1,2,3

DOLLARS IN REVENUE EVERY YEAR 4

3

Distance to Market from Kansas

Kansas is served by a comprehensive rail network comprised of 4,257 miles (6,851 km) of total track, which is the sixth largest network in the nation.6

Kansas’ central location and expansive network provides Kansas-based companies a safe and reliable route to major interstate highways that can connect them to 85 percent of the nation’s population in less than a two-day drive.

Whether by highway, rail or air, Kansas offers excellent transportation and marketing advantages for your business. Centrally located and focused on building and maintaining an outstanding multimodal infrastructure, it is easier and less expensive to ship to and from Kansas.

2

AVERAGE TIME FOR A GROUND PACKAGE TO REACH DESTINATION

KM I | 80 5

500 M

| 1,2 07

KM

7 5 0 MI

1,200 MI | 1,931 KM

K A N S A S

OVER THE ROAD

LOGISTICS / SHIPPING

RAIL TRANSPORT

AIR TRANSPORT

4 6

Association of American Railroads

FOOD PROCESSING AND PET FOOD MANUFACTURERS

70

35

Pet Food Manufacturer

Food and Beverage Manufacturer

/ Interstate System

Represents 250 locations of Kansas food, beverage and pet food manufacturers around the state. All locations and companies not shown. Includes but not limited to ingredient mills, processing facilities and manufacturing plants. Source: Kansas Department of Commerce, Kansas Manufacturing Solutions and Dun & Bradstreet, 2020

Kansas is home to more than 800 food, beverage and petfood processing and production operations.Over 15,000 establishments across Kansas are involved in the food-supply chain, from harvesting wheat to transporting finished goods to your table. Companies can leverage the many benefits of access to agricultural resources, a skilled workforce and our outstanding transportation infrastructure. Kansas is proud to be the home to a multitude of brands like:

5

Notable Kansas Food Manufacturers and Processors Company

Location

Employment

Description

National Beef Packing Co., LLC

Dodge City/Liberal

6,400

Meat processing and packing

Tyson Fresh Meats, Inc.

Holcomb/Emporia/Hutchinson

5,048

Meat processing and packing, poultry, pizza toppings and pork

Cargill / Cargill Protein North America*

Wichita /plus additional worksites

5,000

Meat processing and packing poultry; vegetable, soybean, corn, sunflower and palm oils

Reser’s Fine Foods Inc.

Topeka

1,400

Prepared food manufacturer

Schwan’s Company (Tony’s Pizza)

Salina

1,300

Frozen pizzas

Simmons Pet Food

Emporia

1,164

Pet food manufacturer

Russell Stover Candies, Inc.

Abilene / Iola

1,135

Sugar and confectionery product manufacturer

Seaboard Foods, LLC*

Shawnee Mission/plus additional worksites

1,100

Pork processing

Hill's Pet Nutrition, Inc.*

Topeka

1,031

Pet food manufacturer

Hostess Brands, LLC*

Emporia / Lenexa / Edgerton

915

Snack cakes and pastry manufacturer and distributer

Smithfield Foods, Inc.

Junction City / Wichita

900

Packaged meat processing and packing

Frito-Lay North America, Inc.

Topeka

880

Snack food manufacturer

Creekstone Farms

Arkansas City

800

Meat processor

Kellogg’s

Kansas City, Kansas

600

Snack food manufacturer

SugarCreek Packing Co., Inc.

Frontenac

544

Raw and cooked bacon bits and strips for the retail / foodservice

Mars Wrigley Confectionary US, LLC

Topeka

425

Chocolate and confectionary product manufacturer

Dairy Farmers of America, Inc.*

Kansas City,Kansas

375

Dairy products and food ingredients, including cheese, butter and powdered, condensed and fluid milk

*Indicates headquarters or regional headquarters presence in Kansas. Source: Kansas Department of Commerce, Kansas Department of Labor, Kansas Manufacturing Solutions

6

Educational Assets and Talent Resources KANSAS STATE UNIVERSITY (K-STATE) is a major comprehensive public research university with an enrollment of more than 24,000 students. The College of Agriculture, ranked No. 4 in the nation for best agriculture college, is a leader in addressing the challenges facing the global food crisis, as well as human and animal health and biosecurity across the country.1,2 As the nation’s first land-grant university, K-State offers a wide variety of facilities and programs for businesses and partners to use to expand Kansas’ footprint in the food processing and manufacturing sector. Kansas State University offers the nation’s only milling science and management bachelor’s degree.

KSTATE RESEARCH FACILITIES AND CENTERS Kansas State University ensures researchers and partners have the tools they need to solve global challenges. The university is home to more than 90 research centers, from the 3,487-hectare Konza tallgrass prairie to the Biosecurity Research Institute that focuses on food safety.

Kansas offers a variety of specialized training programs for the food manufacturing workforce:

FOOD INNOVATION ACCELERATOR The Food Innovation Accelerator is an outgrowth of, and collaboration with, the Kansas Value Added Foods Lab, and is housed in the kitchens of K-State Olathe. It is a blend of facilities and expertise designed to provide support for the food product and ingredient industry — especially thosecompanies starting new product lines or scaling up existing processes. Services include quality, nutritional and microbial testing (through the Kansas Value Added Foods Lab), product consulting and help with regulatory and food safety issues.

FOOD PROGRAMS AND SERVICES The K-State Olathe campus serves the food safety and food science needs of the industry.

Professional development training is mandatory in today's highly competitive and ever-changing food industry. K-State Olathe can create programs to fit the many needs of food industry professionals.

Agriculture, food and beverage manufacturing-related industries support approximately 103,000 jobs, or 7.4%, of the workforce in the state of Kansas.3, 4, 5

32,000

29,500

18,000

4,000

1,500

17,500

Animal Production

Crop Production

Meat Production

Pet Food Manufacturing

Confectionery Manufacturing

Other Food Manufacturing

7 1

Wall Street Journal, 2 College Factual 2020, 3 Kansas Board of Regents 2020, 3 Kansas Department of Labor 2020, 4 Labor Market Information Services, 5 Kansas Wage Survey 2019

KANSAS RANKS CONSISTENTLY IN THE TOP TEN FOR PRODUCING BEEF, SUNFLOWERS, FLOUR, CORN AND SOYBEANS WITH GROWTH IN PORK AND DAIRY.

Dot’s Pretzels - Edgerton, KS

Best Harvest Bakery - Topeka, KS

Industry Resources Food manufacturing and processing workforce programs and resources offered by the state to help companies:

AIB International, headquartered in Manhattan, Kansas, is globally recognized for providing audits, inspections, consulting services and other training to facilities. A team of experienced food-safety professionals customizes trainings to minimize risk of food contamination and assists in creating Bulk Solids Innovation Center (BSIC), located in Salina, Kanasas is a university-level research center dedicated to the study of bulk solids material handling. The BSIC is the only one of its kind in North America and supports industries across the country through research, consulting and education using its material properties test lab.

DFA Accelerator is a 90-day immersive program headquartered in Kansas City, Kansas. DFA combines on-site meetings and virtual programs to provide training, growth opportunities and mentorship. These startups meet with relevant investors and industry leaders. To date, 94 percent of DFA alumni companies are still in business.

8

GCAP Training Center is a nationally-recognized program offering on-site and online training to employers to educate new team members in industrial ammonia refrigeration. This program, located in Garden City, Kansas offers customizable training on how to maintain and operate plant equipment and engineering practices. GCAP provides training for more than 600 different companies annually.

The Food Science Institute at Kansas State University facilitates training for students supporting research initiatives. The Institute provides technical and scientific information to consumers, the food industry and governmental agencies. State-of-the-art laboratories and pilot facilities are available to fulfill research, teaching and extension missions.

International Grains Program helps to provide technical, research-based training benefiting food industry professionals globally, and works to enhance the market preference for U.S. grains and oilseeds. The core curriculum focuses on feed manufacturing, grain marketing and management and milling.

Kansas Manufacturing Solutions helps manufacturers resolve their workforce needs through such tactics as proper hiring practices, creating exceptional employee experiences and career development training.

Tony’s Pizza, started in Salina, has been around for 60 years and produces 1.4 million pizzas per day.

Tony’s Pizza - Salina, KS MARS Wrigley Plant - Topeka, KS

Mars is the only food manufacturer on Fortune's 100 Best Companies to Work For List for 2020

KC Steak Co. - Kansas City, KS

Heroes MAKE America connects the retired military community with career opportunities in the manufacturing sector. The program provides integrated training, certification and career readiness in partnership with local community colleges LocationOne is a searchable database of available sites and buildings. Real estate can be found by searching square footage, acreage, geographic location and other important variables. Its integrated GIS component uses customizable layers with market information, demographics, workforce, infrastructure, housing, business and industry to help locate relevant real estate for projects.

TechAccel, LLC is a development company focused on advancing innovation in the agriculture, animal health and food technology sectors. Partner companies use TechAccel to collaboratively advance and de-risk technologies, and accelerate time to market. TechAccel partners with global industry leaders and relevant venture capital firms to assist innovative industry startups.

The Technology Development Institute (TDI) provides services and resources to private industry to advance the commercial readiness of new products and technologies.

TDI employs experienced engineers and business professionals to work with clients through every step from design to commercialization.

Food manufacturing represents the largest sector of manufacturing employment in Kansas.

The National Bio and Agro-Defense Facility (NBAF) located in Manhattan NBAF is the first maximum biocontainment (BSL-4) space to study high-consequence zoonotic diseases affecting food animals. The laboratory facility is capable of housing large livestock and feature a Biologics Development Module (BDM) for the pilot scale development of vaccines and other countermeasures.

The Hostess Brands facility in Emporia, Kansas produces 1,100 Twinkies and Cupcakes per minute; that’s 1,584,000 a day, 578,160,000 per year.

That’s a lot of cream filling!

9

Available Incentives Kansas has various valuable incentive programs tailored to food manufacturing and processing companies to assist in reducing the cost of locating or expanding business operations in Kansas.

•Withholding Tax Incentives

•Sales Tax Exemption on Items Consumed in Production

•Training and Retraining Assistance

•Sales Tax Exemption on Production Machinery and Equipment

•Corporate Income Tax Credits •Property Tax Exemption on Machinery and Equipment by State Statute

•No Inventory Tax

• Sales Tax Exemption for Construction, Build Out, Remodel, Furnish and Equip Worksite

•Funding Dedicated to Transportation Improvements

•Sales Tax Exemption on Utilities Consumed in Production

•77 Designated Opportunity Zones

•No State or Local Earnings Tax

•Utility Incentives to Offset Rate Costs

•Sales Tax Exemption on Ingredient or Component Parts

10

The population of Kansas is more than 2.9 million.

Median Age 37.1 21% Generation Z and 20% are Millennials.

91% of Kansas adults have a high school diploma.

Kansas’ median housing cost is $145,400.

Top States for Business

Kansas Achieves High Rankings

2020 AreaDevelopment

Kansas Ranks 6th

Kansas recognized as the most improved state in the country.

U.S. News & World Report Best States 2019

Kansas recognized as the most improved state in the country.

2019 Reason Foundation’s Annual Highway Report

« Kansans, on average, experience a 19-minute commute... the sixth quickest commute in the country. « The most common non-English languages spoken in Kansas are Spanish, Vietnamese, German and Chinese.2 « Ranking No. 10 in the nation for affordable healthcare costs and No. 15 for overall healthcare system, Kansas offers quality healthcare at an affordable price.6

Council for Community and Economic Research 2020, 2 US Census Bureau 2019, 3 Big 7 Travel 2019, 4 NOAA Climate Comparison 2019, 5 Kansas Wildlife, Park and Tourism, 6 Wallethub 2020

3%

HIGHER

66% OF KANSANS ARE IN THE LABOR FORCE, WHICH IS

Russell Stover

employs over

1,200 Kansans after their most recent manufacturing plant expansions in

THAN THE REST OF THE UNITED STATES.

Abilene and Iola.

Tuttle Creek Lake - Manhattan, KS

KANSAS RANKS NATIONALLY IN THE

Top 5 FOR COST OF LIVING AT 12.1% BELOW THE U.S. AVERAGE

Fresh Farmers’ Market - Lawrence, KS

Department of Commerce

1000 SW Jackson St., Suite 100 Topeka, Kansas 66612-1354 785-296-5298 | kansascommerce.gov

KDC 3.17.2021