One of Delaware’s major downstate industries a significant boost Tuesday as state officials celebrated the latest of four major deals this year to strengthen the state’s position as a key player in agriculture.
Perdue AgriBusiness, a subsidiary of Perdue Inc., announced today it is relocating its corporate headquarters and trading operations from Salisbury, Md., to Seaford, with assistance from the Delaware Strategic Fund, which has been used aggressively in recent months to aid agriculture-related business.
Perdue AgriBusiness expects to complete its relocation by 2012, initially bringing up to 120 jobs, and eventually up to 150, to Delaware. Secretary Alan Levin of the Delaware Economic Development Office (DEDO) says they are predominately white collar jobs.
“It’s not agriculture in the sense of growing something.This is commodity trading, This is the high tech stuff, bringing a differently quality of job,” said Levin. “These are jobs for technicians and practitioners of trading commodities.”
It was good news for a state that has suffered a steady erosion of jobs in its key industries, as well as for Seaford, the former nylon capital of the world.
“This is a big deal,” said Governor Jack Markell. “This is a city that was hit hard years ago as DuPont downsized, and I think everything we can do to rejuvenate Seaford is important. It’s a really strong signal that we hope to build upon.”
“I’m pleased that companies like Perdue continue to recognize the value of our uniquely friendly business environment, our strategic location and our talented workforce,” said Levin
Governor Markell also considered the news well-timed in the wake of his recent trip to China and Taiwan where he spoke specifically about Delaware poultry and other agriculture exports in an effort to “make sure companies like Perdue, Mountaire [Farms], as well as Allen [Family Foods] are on the radar screen of the folks in China and Taiwan. And they are.”
DEDO has recommended $1.74 million Strategic Fund grant for capital construction costs of the new facility and relocation of Purdue AgriBusiness operations, as well as a $375,000 performance‐based grant for new jobs created. The recommendations go to the Council on Development Finance for review and approval. (See DFM News’ previous coverage of the Delaware Strategic Fund here)
Perdue AgriBusiness anticipates an estimated $8 million capital investment in the new facility, which will replace its 40-year-old headquarters in Salisbury. Perdue AgriBusiness President Dick Willey says the new facility is centrally located to his company’s existing operations in the region, including Delaware. Perdue AgriBusiness currently employees 50 Delawareans.
“We’re no strangers to Delaware, and Delaware is no stranger to Perdue AgriBusiness,” Willey said. “We already have five facilities here and have been doing business in the First State for years.”
Perdue AgriBusiness is a merchandiser, processor and exporter of agricultural products through its three arms: Perdue Commodities, Perdue Grain and Oil Seed and Venture Milling.
Delaware’s successful courting of Perdue Agribusiness’ corporate headquarters is the latest in a series of efforts by state officials to strengthen the state’s agriculture industry.
In March, Hanover Foods was awarded a $60,000 grant from the Delaware Strategic Fund for improvements at its Clayton processing facility, which is more than a half century old. At the time of the grant, the facility had 89 employees.
In August, Pinnacle Foods was awarded a $90,000 grant to expand its aging Vlasic pickle processing facility in Millsboro. Vlasic had considered shuttering the old plant and moving production to Michigan, a move that would have cost Delaware about 150 full-time and 150 seasonal jobs.
Earlier this month, state officials announced that DEDO awarded Mountaire Farms a $787,500 grant from the Delaware Strategic Fund to aid a $34.5 million expansion of its poultry complex in Millsboro. Mountaire Farms, which employs more than 3,600 people in Sussex County, expects the expansion to create another 31 jobs by December 2011.
Agriculture Secretary Ed Kee says the more than $3 million in economic assistance committed in these deals sends a strong message about the health of Delaware’s agriculture industry.
“It’s a signal to the region and the country that Delaware and Delmarva agriculture is important and is thriving,“ said Secretary Kee. “[It] translates to opportunities for the farmers, and it translates to jobs, and it translates to all the associated economic activity. It is a real infrastructure investment in agriculture.”
Secretary of Agriculture Ed Kee stresses the importance of the agriculture industry to Delaware.
Secretary Levin says using the use of the Strategic Fund to strengthen agriculture infrastructure “recommits what was already a very strong commitment by the state to this very important industry.”
Levin says the four agriculture deals could bring 275 new permanent jobs to the state, most of them in Sussex County. Sussex County’s non-seasonally adjusted unemployment rate stood at 7.7 percent in September. That was up from 7.3 percent one year before, but lower than the statewide rate of 8.3 percent and the lowest of the state’s three counties.
Levin points to potential “ancillary jobs,” including the construction work involved in the deals. The Mountaire expansion is expected to create more than 300 construction jobs, he says. It’s not known yet how many jobs will be generated by construction of the Perdue Agribusiness headquarters.
“In the end, these are huge shots in the arm for this region and the state,” Levin said.
Governor Markell says these types of initiatives put Delaware on the right track to lowering the unemployment rate.
“Government doesn’t create jobs. But what government must do is create an environment where the private sector can thrive. That’s our responsibility,” Markell said.
