6/7/2016 Agribusiness Opportunity in North Carolina Ron Fish Agribusiness Development NCDA & CS

Goal: To increase the profitability of family farms through support for value-added agricultural enterprises. Direct assistance through: Client consultations Financial and technical resources Identification of infrastructure support Intra-Agency cooperation

Successful Projects Blue Ridge Food Ventures, Buncombe County Small Animal Slaughter Facility, McDowell County YAMCO, Sweetpotato Processor, Greene County Sanderson Farms, Poultry Plant, Lenoir County Stamey Farms, Ice Cream & Yogurt, Iredell County Sturgeon Facility, Caviar, Carteret County

6/7/2016 Increasing Wealth Through Value-Added Production Farm Cash Receipts (2011)$10.5 billion Agribusiness Industry$77 billion Value-Added = 66.5 billion more than the value of raw commodities All numbers are increasing, as well as the gap between the cash receipts and total

6/7/2016 Advancing Up the Food Chain Cow’s Milk to Specialty Cheese –raw milk = $12 to $15 per 100 lbs. –processed milk, wholesale= >$20 per 100 lbs. –cheese, wholesale= $375 per 100 lbs. –cheese, retail= $800 per 100 lbs.

Growth Sectors Food & Beverage Processing Exports Agricultural Biotechnology Produce Specialty Meats Biofuels and BioEnergy 6/7/2016

Food and Beverage Processing Major Processing Companies Wineries, Breweries, and Distilleries Small Specialty Food Businesses Farmstead Dairies 6/7/2016

Farmstead Dairy

Export Dependency by County Insert Map Here

Total NC Ag Exports Exports double since tobacco buyout – Expect continued growth

Specialty Foods Success Stories Potential Impact for over 500 family owned businesses Recent Successes include: –Bone Suckin’ in 60 countries –Texas Pete rapid expansion –Ms Jenny’s Pickles in China –Jennie O’s turkey in China

NC Wood Exports $1.5 billion industry focused on rural NC - Doubled in past decade Current focus on EU renewable energy sector to counter decreased domestic demand for paper

NC Sweet Potato Exports to EU About 20% of Production - Expect to double in 3-5 years Prices and production at all time highs One time Appropriations Effect

NC Soybean Exports Soybean container exports raise basis by 70

Biotech by the Numbers –538 companies employ 58,495 individuals, average pay-$75,470 –$1.92 billion in annual state and local taxes –Net job growth from 2001 to 2008 was 29% in North Carolina—twice the national bioscience growth, top among all states. Source: N.C. Biotechnology Center

Impact of Biotechnology Wide adaptation of GE crops since % of US soybeans are HT 78% of US cotton is HT; 73% for Bt 70% of US corn is HT; 63% for Bt USDA- Biotechnology & Regulatory Services 316 notifications and permitted field inspections were conducted in NC during (highest total to date) Future developments: environmental stress tolerance, enhanced biofuel crops, trees Source: USDA Economic Research Service

Produce Fruit and Vegetable Processors Direct Local Sales Specialty Crops Export 6/7/2016

Specialty Meats Licensed Meat Handlers National Brands Ethnic Markets, Free Range, Organic, Antibiotic Free, Pasture Raised, All Natural Aquaculture 6/7/2016

Sheep Production

6/7/2016 Trout Farm

6/7/2016 Grass-Fed Beef

6/7/2016 Supporting Value-Added Infrastructure Development Production Assistance Marketing Assistance Grants and Loans

6/7/2016 NCDA & CS Resources State Operated Farmers Markets Horticultural Marketing Specialist Livestock Marketing Specialist Agritourism Office Aquaculture Consultants “Got To Be NC” Marketing Programs Food and Drug Protection Division Meat and Poultry Inspection Division Agribusiness Development International Marketing

6/7/2016 What can counties provide? Infrastructure Incentives based on total picture Policies supportive of Farming/Agribusiness Human Resources Team Approach Education and Training

4-HFFA Community Colleges Land Grant Universities NC Cooperative Extension Service NC Department of Agriculture & Consumer Services NGOs, Carolina Farm Stewardship, RAFI, ASAP 6/7/2016

Direct Funding - Grants RAFI - Tobacco Communities Initiatives Pass through funds from Tobacco Trust Fund Foundation Sustainable Agricultural Research and Education Producer Grants (SARE) - Southern Region (770) , Regional Non-Profits, Pass-through funds from major foundations USDA Value-Added Producer Grants from Rural Development (919)

6/7/2016 Indirect Funding Government Funds - County, State and Federal Golden LEAF Foundation Z Smith Reynolds Foundation Duke Endowment for Rural Carolinas Appalachian Regional Commission Tobacco Trust Fund

6/7/2016 Infrastructure to Support Value- Added Agriculture Production Blue Ridge Food Ventures – Buncombe County NCDA&CS Pasteurizer Loan Program Foothills Pilot Plant - McDowell County Piedmont Food & Ag Processing – Orange County Pilot Mountain Pride – Surry/Stokes County

6/7/2016

Agribusiness Development Ron Fish – Agribusiness Manager, Annette Dunlap – Agribusiness, Eastern NC, Martha Glass -Agritourism, Debra Sloan - Agribusiness/Aquaculture Far Western NC, Pete Anderson - Agribusiness/Aquaculture, Eastern, NC, Bob Grooms – Agribusiness, Western NC,

6/7/2016 Final Thoughts Don’t rely on the past to be your guide, learn from the past and adapt for the future As agribusiness investment continues to grow, how do we position ourselves to take advantage of this opportunity? Build your team, develop your assets and plan for success