Alabama’s agri-food sector is booming with major investment projects

When the JM Smucker Co. celebrated the opening of a $1.1 billion manufacturing facility in McCalla days ago, it marked another milestone in a long-running growth spurt that is revitalizing Alabama’s key agricultural and food sector.

According to the Alabama Department of Commerce, more than 50 growth projects have launched in the sector statewide since the start of 2021, paving the way for more than $3.5 billion in new investments and creating more than 2,500 jobs.

The agri-food sector’s growth potential led to it being identified as one of eight priority hiring sectors in Alabama’s new economic development strategic plan, Catalyst.

“Alabama’s agriculture and food sector is not only an important part of our state’s heritage, but also an important driver of our economic future,” said Ellen McNair, Secretary of the Alabama Department of Commerce. “The growth we are seeing in this sector underscores Alabama’s competitive advantage as a premier location for food production and agricultural innovation.

“With continued investment and support, we are creating opportunities for quality jobs, expanding our reach in national markets and strengthening our local communities,” she said. “This sector has incredible growth potential and we are committed to creating an environment in which Alabama’s agriculture and food industry can continue to thrive for generations to come.”

Conecuh Sausage, an iconic Alabama brand, plans to invest $58 million to open a production facility in rural Coffee County, its second in the state. (Hal Yeager / Governor’s Office)

Growth projects

The November 7 grand opening of Smucker’s 900,000-square-foot McCalla facility demonstrates this potential – the project, announced in November 2021, is expected to ultimately create 750 jobs.

The new facility will expand production of the popular Uncrustables brand to meet growing demand. Chairman, President and CEO Mark Smucker highlighted the company’s journey, noting that Uncrustables has grown from a $12 million brand to one that is targeting $1 billion in annual sales by 2026.

“On behalf of our company, I would like to express our gratitude to the officials of the State of Alabama and Jefferson County for their partnership. “I would also like to express my gratitude to the great team here at McCalla for their hard work in opening the facility,” said Smucker, who was on hand for the ribbon cutting ceremony.

Other current high-profile projects in the industry include:

• Coca-Cola United Bottling announced plans in May to invest an estimated $330 million to build a new headquarters and manufacturing/distribution facility in Birmingham’s Kingston community. The project is expected to create 50 new jobs while maintaining more than 750 jobs in the Magic City.
• Conecuh Sausage, a beloved Alabama brand for nearly half a century, launched a project in February investing nearly $58 million to open a second production facility in the state. The company creates 110 jobs in Andalusia, in rural Coffee County.
• In March, Southern Roots Nut Co. launched a $16.6 million project to open a pecan processing plant in Dothan, where the New Mexico-based company will create 120 jobs in the Wiregrass region of Alabama.

Alabama’s agricultural landscape provides a solid foundation for both agricultural excellence and food and beverage production facilities.

Each year, the state prepares its vast agricultural terrain, covering approximately 8.3 million acres on 39,000 farms, to produce a rich variety of crops and products. This premium includes leading products in freshwater fish, poultry, peanuts and pecans.

With billions of dollars in annual revenue, Alabama plays a key role in both agriculture and as a center for food processing and production.

Through research from institutions such as Auburn University and the HudsonAlpha Institute for Biotechnology, Alabama is optimizing its growth potential within the sector.

HudsonAlpha faculty researcher Josh Clevenger (right) led the HudsonAlpha Institute for Biotechnology’s efforts to improve peanut safety. (Amy Weiser)

Impact on rural areas

Peanuts are an important part of Alabama’s rural economy. They contribute more than $210 million annually and support 3,000 jobs. Peanuts are grown in 37 of Alabama’s 67 counties, including many rural counties.

Today, HudsonAlpha scientists conduct innovative research aimed at producing healthier peanut crops and work with farmers and state agricultural industry leaders on peanut genome projects. The goal is to develop peanuts that can resist disease and survive droughts.

“Our work is not just about science; “It’s about improving people’s lives,” writes Dr. Josh Clevenger, a scientist involved in the project, in a blog post. “Peanuts are a vital crop for millions of people around the world and by developing better varieties we can help farmers increase their yields and incomes.

“When I say “we,” I include the people in the Wiregrass. The Wiregrass community has embraced us and worked with us to create something special.”

Additionally, the Huntsville Institute launched the HudsonAlpha AgTech Accelerator, which aims to strengthen Alabama’s ability to translate agricultural technologies into commercial products that help producers in the state and beyond. The 12-week accelerator invests $100,000 in five startups at the forefront of the agricultural technology industry.

Alabama’s rural communities are well-positioned to benefit from industry growth.

“With targeted investments, cutting-edge research and a solid foundation in traditional agriculture, Alabama’s agriculture and food production sector is poised to continue its upward trajectory, driving sustainable growth and creating new opportunities statewide,” said Brenda Tuck, Department of Commerce Rural Division development director.

This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website.