The newspaper of the Agricultural Utilization Research ... · Coffee Shop Association. Other shop...

OCT.-DEC. 2002VOL. 11, NO. 4

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FINAL PART OFOUR SERIESpage 4

The newspaper of the Agricultural Utilization Research InstituteAG INNOVATION NEWS

How AURI works

SUNNY DELIGHTpage 9

The Btu busterspage 16

page 3

INSIDE:

From farm gateto kitchen door

page 6

Staying freshBY EDGAR OLSON EXECUTIVE DIRECTOR

A poster caught my eye the other day. Itwas a picture of a large piece of moldybread. The poster’s captionadmonished the reader to “Stay fresh,or be fed to ducks.” A unique approach,but a worthwhile message nonetheless.

In any industry, competitionnecessitates staying abreast of currenttechnologies and business practices. AtAURI, we try to goone better. Ourstaff endeavors toprovide top-quality servicewhile keeping aneye on the future.

The AURI staffhas years ofexperience inindustry,business, highereducation, andresearch. Theexpertise and connections gained fromyears of working in ag-related fields,combined with an intimate knowledgeof many key industries, represent awealth of resources for our clients.

But the search for knowledge does notend there. To be a leader means notonly grasping the current status of anindustry but also foreseeing emergingopportunities. Those opportunities arewhat drive AURI.

AURI undertakes initiatives to examinepotential markets for ag commodities.In our recent past, initiatives haveexamined the promise ag commoditiesand coproducts hold for fuels andbiobased products such as plastics (seerelated stories on pages 4 and 16). Wehave also looked into emergingmarkets for meat products resultingfrom Minnesota’s changing ethnicpopulation (see story on the lambindustry, page 12). Those are just two ofdozens of initiatives we haveundertaken.

We also use market information topinpoint opportunities. Staff membersattend conferences, meet withcollaborators, do research and takeclasses in an effort to stay current. Wedo all that we can to identify newmarkets for Minnesota-grown goods.

While it is a never-ending search, weare having an impact. In the past yearalone, AURI has worked on projectsthat have involved more than 30Minnesota-grown products.

Including duck.

PAGE 2 AURI AG INNOVATION NEWS • OCT.-DEC. 2002 Visit our Web site at www.auri.org

A nonprofit corporationcreated to strengthen ruralMinnesota’s economy, AURIhelps businesses respond tomarket opportunities withnew and value-added usesfor agricultural goods. TheInstitute builds working partnerships withbusiness innovators, agricultural groupsand researchers, and provides technicalsupport to clients conducting newproduct research and development.

AURI programs are available to legally-organized businesses or cooperatives withprojects that have the potential to createnew uses or new markets for Minnesotaagricultural commodities. AURI assistanceis designed for the early stages of aproduct’s life cycle, while an element offeasibility is yet to be determined. Projectproposals are evaluated on the followingcriteria:

• Innovation/uniqueness• Market viability• Use of Minnesota commodities• Number of farmer-producers impacted• Amount of value added from further

processing• Economic impact• Cost savings

Programs are designed to assist with:

• Identifying emerging value-addedopportunities

• Developing innovative commodity-based products

• Developing production processes forfeasible products

• Promoting products developed withAURI technical assistance

• Providing resources to bring newproducts and processes to themarketplace

Assistance may include:

• Access to AURI’s scientific and businessstaff

• Access to laboratory and pilot plantfacilities

• Product development and feasibilitytesting

• Process evaluation and improvement• Technology transfer and applied

research• Business needs evaluation• Links to available resources• Potential for grant funds to qualifying

applicants

AURI provides resources proportionate tothe project’s impact. Smaller-impactprojects may be eligible for technicalassistance only, while projects withindustry-wide impact may be eligible forfinancial assistance.

AURI FacilitiesAURI operates several laboratories:• Pilot Plant and Product Development

Kitchen, Crookston• Coproducts Utilization Laboratory and

Pilot Plant, Waseca• Fats and Oils Laboratory, Marshall• Meat Laboratory, Marshall

AURI Field OfficesSoutheast OfficeLisa GjersvikP.O. Box 251Waseca, MN 56093(507) 835-8990

Northern OfficeMichael SparbyP.O. Box 599Crookston, MN 567161-800-279-5010

Central OfficeMichael SparbyP.O. Box 188Morris, MN 56267(320) 589-7280

Southwest OfficeDennis Timmerman1501 State StreetMarshall, MN 56258(507) 537-7440

For e-mail addresses, visit AURI on the Web:www.auri.org

OLSON.

EXECUTIVE DIRECTOR’S COLUMN AURI NEWS

ABOUT AG INNOVATION NEWS

AURI GUIDE TO SERVICES

Cindy Green, managing editorCharles Smith-Dewey, designerDeborah Hoeldtke, editing servicesRolf Hagberg, photography

Published by the AgriculturalUtilization Research Institute to informthe food, agriculture and businesscommunities and the general publicabout developments in ag-basedproducts.

For information on AURI, call 1-800-279-5010 or visit our Web site: www.auri.org

Address correspondence or freesubscription requests to:

Dan Lemke, Communications DirectorAg Innovation NewsP.O. Box 251Waseca, MN 56093Telephone: (507) [email protected]

TM

Trademark of American Soybean Association

AURI at FarmFest 2002 andthe Minnesota State Fair

AURI showcased innovative Minnesotaproducts at Farmfest 2002 near RedwoodFalls on August 6-8, then at the MinnesotaState Fair, August 22 through Labor Day.Above: Fairgoers checked out new value-added products at AURI’s exhibit in the Agri-Land building on Machinery Hill. Below: Farmfest visitors at AURI’s tent weretreated to free food samples, includingPrairie Smoke Barbecue Sauce produced byBOLT Enterprises of Westbrook-WalnutGrove High School. Twelve AURI clientsdisplayed their products and services at thethree-day farm show.

Above top: The Minnesota Corn Growers Association’sFarmfest display featured a Ford pickup that is being usedto test E-B Diesel, a blend of ethanol, biodiesel andpetroleum diesel fuel. Representing organizations thatsupport E-B diesel research, from the left, are MichaelSparby of AURI, and Yvonne Simon and Gene Fynboh of theCorn Growers Association. Above bottom: AURI intern Kara Ferguson guided a youngparticipant through the “State Fair Millionaire” game atAURI’s Agri-Land exhibit. The quiz tested kids and adults onMinnesota agriculture.

BY GREG BOOTH

Hopkins, Minn. — Minding her soups one dayat the Pekoe and Java coffee shop, Beth-AlisonBataille heard a customer jokingly refer to heras the “soup Nazi.”

“It may have been funny on Seinfeld,” but notto Bataille, of German heritage.

She preferred ‘Soup Goddess,’ now the brandname of her frozen, ready-to-eat vegetariansoups being distributed to coffee shops, delisand food services across the Midwest.

Soup Goddess comes in African peanut,ginger carrot, cream of lentil, sweet potatocurry, Moscow mushroom and Tuscan multi-bean flavors. All six varieties includeMinnesota ingredients, Bataille says, and areall-natural. She is negotiating with an organicfarmer for custom-grown herbs to flavor thesoups.

Bataille first noticed the demand for her soupswhen she served as treasurer of the MinnesotaCoffee Shop Association. Other shop ownerswanted ready-to-eat vegetarian soups likeBataille was serving, but they were not easy tofind.

“I started finding out what it would take toproduce them,” she says. “I made a thousandphone calls” investigating ingredient sources,package sizes and much more.

Then Bataille began working with CharanWadhawan, AURI food scientist in Crookston,to scale up her recipes. There was a hitch: therecipes had never been written down. Bataillestarted writing, and the large-scale resultswere surprisingly good, she says. Wadhawanalso helped with nutrition labeling and tastetesting.

Bataille was concerned that by “going to alarge batch, we would reduce quality.” Thesoups have to be able to retain flavor andtexture even when heated up and cooleddown numerous times in a typical coffee-shopkitchen, she says.

Captain Ken’s in St. Paul produces andpackages the soups. The first production runwas in July 2001 — not a great soup salesmonth, but demand was adequate and

Bataille received “very pleasant reactions.” ARiver Falls, Wis. deli owner reported that the5-pound portions were just right — noleftovers as with more commonly available 8-pound packages.

Customers like the exotic flavors, and thesoups are cost-effective for small shops,Bataille says. She targets coffee houses, cafes

and delis because they often do not want toproduce their own soup, or they want soupavailable on weekends when the chef orowner may be away.

Soup Goddess sales now range from $1,000 to$1,500 per month, and Bataille is looking formore customers and distributors. Her brandidentity, fashioned by Natoli Design Company,

could eventually help launch Soup Goddessinto retail sales. She is also cooking moreflavors to add to the line, which is distributedby Roots and Fruits and Instant Whip in theTwin Cities. ■

QUICK FACT: Customers like the exotic flavors and the soups are cpst-effective for small shops.

AURI AG INNOVATION NEWS • OCT.-DEC. 2002 PAGE 3

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Beth-Alison Bataille’s customers call her the “Soup Goddess” for her exotic-flavored soups such as Africanpeanut and sweet potato curry served at her Hopkins, Minn. coffee shop. The nickname is now a brand offrozen, packaged soups (shown above) that Bataille markets to coffee shops and food services across theMidwest.

AURI AG INNOVATION NEWS • OCT.-DEC. 2002 Visit our Web site at www.auri.org

HOW AURI WORKS: AN EYE ON BIOFUTURES

Editor’s note: This is the final installment in aseries exploring AURI’s structure and services.Previous segments covered AURI’s mission,programs, and business and technical services.We now explore AURI’s forward-lookingefforts to identify opportunities in value-addedagriculture.

BY CINDY GREEN

Since World War II, cheap petroleumhas fueled our economy. Not onlydoes oil run our transportationsystem, it is in plastics, fabrics,lubricants, flooring, even cosmetics.

But change is coming, says Keith Sannes,AURI deputy director in Crookston. “Peopleare saying, we want to have these thingsderived from renewable resources. Petroleumis known to be a limited resource and harmfulto the environment.”

Replacing petroleum with ag-based productsis a major AURI focus for the years to come,Sannes says. Besides responding to value-added product ventures, the Institute islooking at long-term opportunities spurred byglobal economic, environmental and politicalchange.

Market USA“Since September 11, there has been arenewed (American) interest in self-relianceand economic security,” says Lisa Gjersvik,AURI project director in Waseca. “We want tobe in control of our own destiny. I think thereis opportunity there.”

Gjersvik is completing a review of governmentstudies, work funded by commodity groupcheckoff dollars, and research conducted bynational laboratories. So far, “the three topopportunities emerging in agriculture appearto be bioenergy, bio-based products andmedicinal foods or nutraceuticals.”

AURI is already doing substantial work in thebioenergy area. For example, AURI’s fats andoils laboratory in Marshall is a leader inbiodiesel research, and the coproducts lab inWaseca is analyzing and pelletizing agresidues for fuel (see story, page 16). AURI hasalso delved into nutraceutical development,such as fractionating soy lecithins to makehigh-value supplements.

On the national level, Gjersvik says,significant biofuels research is beingconducted at the National Renewable EnergyLaboratory in Golden, Colo., as well as at

federal agencies such asthe U.S. Department ofEnergy and its Office ofIndustrial Technology, andUSDA’s AgriculturalResearch Service. “AURItries to keep abreast ofthese new technologiesfor possible opportunitiesfor Minnesota,” Gjersviksays.

But can ag productscompete with petro-products in themarketplace? “Sure,”Sannes says. “That will betaken care of in the future— as petroleum becomesmore scarce, prices will goup and ag materials willbe competitive.

“We in this country andthe world have spentbillions of research dollarsand huge amounts ofpeople’s time working onpetroleum products; wehaven’t yet done that withag materials.”

Developing ag-basedsubstitutes “will happenover decades of time,”Sannes concedes. “It willtake a lot of hard work andmoney.” But by the timethe economics catch up,“we will have a lot of the work done.”

Whatever happened to starch?Bioproducts have not received much notice inthe past decade. Inventions such as starchplastic bags received plenty of attention in themid-1980s, but never caught on in themarketplace.

Now that’s turning around, Sannes says. “I seea rekindled interest in using ag materials toreplace plastic fibers in building materials,polyesters, anything like that,” says Sannes,who worked on starch polymers during hisorganic chemistry studies at the University ofIowa, post-doctoral studies at the Universityof Michigan, and later at General Electric’sresearch lab in Schenactady, N.Y.

“Most chemicals (polymerized into plastic)currently made from petroleum can also bemade from starch. We just don’t have all theroutes down yet, and we haven’t had theresearch money.”

In 1989, soon after joining AURI, Sannesformed a coalition to work on corn-starchpolymers with researchers from MankatoState University and the Argonne Laboratorynear Chicago, Ill.

Several entrepreneurial companies have usedthe technology to make starch-based plastic.The first and most successful has been aCargill-Dow partnership that is makingrenewable products at a Nebraska plant (see“Elsewhere in ag innovation,” page 13).

One entrepreneurial company assisted byAURI has invented a cheaper method ofmaking polymers. Rather than first turningstarch into a chemical, which requires an

expensive purification process, the companytakes ag residue — chopped-up stalks andstems — and adds chemicals that “chew upsmall pieces so it becomes liquid,” Sannessays. “Then they add a chemical to bring thesolids out of the solution in the form youwant — whether it’s a 2 by 4 or gas cap orcarburetor.”

This is “not pie in the sky,” Sannes says. “As weget into this, it will be an ongoing evolution —we will get better at making starch into justabout anything.”

Ag revolution, second waveThe evolution started, but was halted, over acentury ago. Before the Civil War, ethanol wasa leading industrial solvent and was later usedto make rubber for World War II militarycrafts. In 1941, Henry Ford built a car of

How AURI Workspart IV

An eye onbiofutures

AURI Deputy Director Keith Sannes, a polymer chemist, is seeing renewed interest in starch-based plastics and otherbioproducts. In the coming decades, “as petroleum becomes more scarce, prices will go up and ag materials will becompetitive,” Sannes says.

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HOW AURI WORKS: AN EYE ON BIOFUTURES


soybean and vegetable plastics and filled the tank with cornethanol. The tires were made from goldenrod grown byThomas Edison. After World War II, however, commoditiesfound better markets in exports and oil prices plunged,setting the stage for an economy driven by fossil fuels.

Recent initiatives could put us back on the route to arenewable-resource economy, Gjersvik says. In the late1990s, representatives of the agricultural, forestry andchemical industries, including AURI’s Max Norris, wrote avisionary plan initiated by the National Corn GrowersAssociation: “Plant/crop-based Renewable Resources2020.” It calls for replacing 10 percent of fossil fuel-basedmaterials with plant-based materials by 2020 andincreasing that ratio to 50 percent by 2050.

Two federal actions — President Clinton’s 1999 ExecutiveOrder 13134, “Developing and Promoting BiobasedProducts and Bionergy,” and the Biomass Research andDevelopment Act of 2000 — have accelerated federalresearch and development in these areas.

“It’s AURI’s intention to be a leader in this field,” Gjersviksays. “Wherever possible, we want the processing to bedone in this state, preferably by producer groups.” Butultimately those taking advantage of this new economy“will be those willing to step up to the plate.” ■

Lisa Gjersvik, AURI project director in Waseca, says her reviewsof government, commodity-group and privately-fundedresearch is showing that “the three top opportunitiesemerging in agriculture appear to be bioenergy, bio-basedproducts and medicinal foods.”

AURI’s Keith Sannes says he sees a “rekindled interest in using ag materials to replace plastic fibers in building materials, polyesters, anything like that.”


QUICK QUOTE: “Our customers ... can shake hands with the breeder, the feeder, the processor and the delivery person.” — Ralph Kaehler

BY E. M. MORRISON

St. Charles, Minn. — Winona County cattleproducers Ralph and Filomena Kaehler are abit “touchy” about their identity-preservedbeef business.

“Our customers can reach out and touch thepeople who produce their food,” Ralph says.“They can shake hands with the breeder, thefeeder, the processor and the deliveryperson.”

Kaehler and his partners have integrated theirbusiness to control every step of meatproduction and distribution — from geneticsand breeding to feeding, processing anddelivery. They are among a small but growingnumber of Minnesota farmers who marketstraight to consumers to get more for theirproducts.

Worldwide reputeRalph Kaehler, 41, is a fourth-generationcattleman. He lives on his family’s centuryfarm near St. Charles in southeasternMinnesota, country that is “as close to God asyou can get without being in heaven.”

Since 1918, Kaehlers’ Homedale Farms hasproduced registered Shorthorn cattle,building an international reputation forShorthorn, Angus and Simmental genetics.Kaehler and his two brothers sell about 100bulls per season, plus semen, bred heifers andshow calves.

The cattle are raised in Cannon Falls, Minn.,in a 500-head feedlot owned and managed bypartner Dave Kimmes. The third partner,Dave Lindevig of River Falls, Wis., providesnutritional and marketing oversight for the

group, which finishes cattle for local cow-calfproducers who use Kaehler Farms seedstock.

“We feed a totally balanced ration of forageand grain — no animal byproducts,” Lindevigsays. To further differentiate their cattle in themarketplace, they do not use growth hormoneimplants in the finishing phase.

By controlling genetics, nutrition, feeding andhandling, the group produces superior beefthat is tender and well marbled, Kaehler says.“People rave about our quality. But (by) sellingin the commodity markets, we weren’t gettingthe benefit of that.”

So in 2001, Kaehler, Lindevig and Kimmesformed a direct-marketing company, KimVig,Inc., to take their beef straight to consumers.“We’re trying to capture the increased animal

value at the retail level,” roughly 40 percentover wholesale, Kaehler says.

You-betcha beefGeneva Meats, a federally inspected slaughterplant in Geneva, Minn., processes KimVigbeef, which is naturally aged for 12 to 14 daysand handled separately to preserve itsidentity.

To cement KimVig’s identity, the group chosea folksy, Minnesota-modest brand. “Wethought, let’s just call it what it is: Darn GoodMeat,” Lindevig says. He says their firstcustomer was even more emphatic: “I lookedat the check and it was made out to ‘DamnGood Meat.’ ”

KimVig’s first direct sales were made througha River Falls youth hockey club, which earned

From farm gate to kitchen door, southern Minnesota cattle producersare controlling meat production and giving consumers what they want.

Darn good meat

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Posing under the arc of an evening shower’s rainbow, Ralph Kaehler, a fourth-generation cattleman, his wife Filomena and sons Seth (at left) and Cliff want to preserve their rural lifestyle by tapping directly into the consumer market.


QUICK QUOTE: “People are busier now, and they like the convenience (of home delivery).” — Mark Beskau

about $1,000 in donations for the meat, andKimVig gained two dozen regular customers.Sales picked up in the summer of 2001 whenKimVig partnered with Beskau Home Deliveryof Hastings.

The milkman comethThe Beskau family has been trucking since1957. Their main service is hauling raw milk,but dairy industry consolidation could shutthem out of that market within 10 years, saysMark Beskau, 39, who runs the company withhis two brothers.

To diversify, the Beskaus began home milkdelivery last year. Popular 50 years ago, homedelivery “is making a comeback,” Beskau says.“People are busier now, and they like theconvenience.” The business runs one milktruck full-time and another part-time, serving300 homes and daycares in Hastings, acommunity of 18,000 southeast of St. Paul.

“The Beskaus were interested in putting meaton their trucks,” Kaehler says, “and we werelooking for a way to reach more homes. Theyhave the same values and goals as we do — it’sthe perfect fit.”

The delivery arrangement benefits bothcompanies. KimVig stocks the trucks withbeef, allowing Beskau to expand productofferings without bearing inventory costs.Beskau, in turn, makes weekly sales calls forKimVig and fills orders.

Beef promo on a budgetSales of home-delivered meat are runningabout $2,000 a month, Beskau says. “It’s a verygood product. People who try it like it. We’rehaving trouble getting enough people to try it,though.”

Like most new food companies, KimVig haslimited funds for advertising and free samples.“That’s one of our biggest marketingchallenges,” says Lindevig, 42, marketing

director of American AGCO, a farm servicescompany.

AURI helped KimVig design a couponpromotion to encourage people to try theirbrand. The Institute also assisted with labelingrequirements and KimVig’s marketing plan.The group has been working with AURI’sDennis Timmerman, who has been anespecially good sounding board for ideas,Kaehler and Lindevig say.

Touching the farmIn its first year, KimVig sold 60 head of beefdirectly to consumers. Eventually, thecompany hopes to market all its finishedanimals this way.

The Minnesota Department of Agricultureestimates that at least 29,000 head of beef

were sold directly to Minnesota consumers in2000, up 25 percent from 1994. That is lessthan 4 percent of slaughtered cattle. Still, saysPaul Hugunin, an MDA marketing specialist,“Over the last 10 years, we’ve seen an increasein the number of animals sold directly toconsumers.”

Why buy directly from farmers? “The top tworeasons we always hear from consumers arequality and taste,” Hugunin says.

Beyond that, Kaehler adds, consumers arelooking for assurance on how their food isproduced. “We offer our customers not onlyan exceptional eating experience but anenvironmental and emotional connection toagriculture. That’s why our slogan is ‘Darngood meat from darn good people.’ ” ■

BULLS INChina

BY E. M. MORRISON

China is a one-billion-person market, andKimVig wants a piece of it. With AURI’shelp, the marketing company is pursuingbeef exports to China, where Kaehlers’Homedale Farms has already establishedbusiness contacts.

Six years ago, the Kaehler family introducedShorthorn cattle to Yunnan Province insouth central China. Chinese officialsbought 40 bulls and 110 bred cows fromKaehler and 20 other Midwest producers.While the deal was being put together, theKaehlers hosted two trade delegations attheir St. Charles farm. “They looked at ourcattle and they liked our approach,” RalphKaehler says.

The Shorthorns went to China in the fall of1996. The next summer, Ralph followed tocheck on the cattle and renew contactswith Chinese agriculture officials.

Last year, Ralph’s wife, Filomena, and sonCliff were part of a Minnesota Trade Officeexhibition at the Food and Hotel Show inShanghai. And this June, Ralph revisitedChina with Gov. Jesse Ventura. “There’s a lotof interest in our beef — both our geneticsand our meat.”

As China becomes more prosperous,demand for beef will likely surge, providinga huge potential market for Minnesotacattle producers, Kaehler predicts. But thatis in the future. “This is definitely a long-term effort.”■

Services AURI providedKimVig include:

• Labeling

• Promotions

• Referrals for exporting

• Marketing assessments

AURI at work

Beskau’s Home Delivery of Hastings, Minn. is now distributing KimVig beef as well as milk to 300 homes and daycares. Pictured is David Beskau, who runs the service with two brothers, and his wife, Jean.

From left, cattle producers David Lindevig, Ralph Kaeher and Dave Kimmes, formed KimVig, Inc.to market their beef under the label “Darn Good Meat.”

KimVig peddles its meat to Yunnan Province


QUICK QUOTE: “People don’t understand ... the opportunity to grow this industry, or...the crisis if it declines.” — Harold Stanislawski

BY E. M. MORRISON

When the Dairy Farmers of America closed acheese plant in Fergus Falls last year, the townlost a $44 million business and more than 100skilled jobs.

Yet the economic aftermath went far beyondthat: 350 dairy farmers in 10 counties wereforced to ship milk elsewhere; independentmilk haulers had to upgrade trucks to serve amore distant dairy plant; the local powercompany lost a major customer; banking,wholesale trade and construction businessesall felt the closing.

The region’s total loss? More than $100 milliona year, says Su Ye, an economist at theMinnesota Department of Agriculture. “It’s notjust the plant and the jobs at the plant, thatare lost. It’s much, much more.”

In a recent study of the state’s livestockprocessing, co-funded by AURI and MDA, Yeoutlines the total economic activity generatedby six Minnesota meat and dairy companies.Her study also estimates economic gains andlosses from potential changes in plant output— offering a close look at what Minnesotastands to lose if the livestock processingindustry shrinks.

Turkeys galoreAnimals power rural Minnesota, says MichaelSparby, AURI project director in Morris,Minnesota is the top turkey-producing statefor the second year in a row and ranks third inhogs, fifth in milk, seventh in red meatproduction, ninth in eggs and 10th inchickens.

Livestock accounts for more than half ofannual farm revenues — $3.9 billion in 2000,according to the Minnesota Department ofAgriculture. Livestock processing plants yieldanother $6.7 billion in annual sales.

But cash receipts from livestock farms andprocessing plants account for less than half ofthe industry’s total economic contribution toMinnesota, Ye says.

Animals boost the value of Minnesota-growngrain, including the mounting supplies ofdistillers dried grains and soybean meal.Livestock farmers and processors purchasesupplies, equipment and services in thecommunity; they employ local workers whobuy food, houses and entertainment; they paytaxes to run schools and plow streets.

When these economic “multipliers” are added

in, Minnesota livestock production andprocessing generate an estimated $21 billionof commerce a year, Ye says. The industryprovides some 51,000 farm and processingjobs, plus another 108,000 jobs dependent onthe industry, the Ag Department estimates.

Bring home the baconThe AURI-MDA report, which uses industrydata from 1997, 1998 and 1999, shows thepowerful economic force of each processingplant, Sparby says. Take the Hormel Foodspork plant in Austin, for example.

The Austin plant reports annual sales of $764million. The operation buys $264 millionworth of hogs from 700 farmers in southernand central Minnesota. The plant’s 2,900workers earn an estimated $77 million inwages.

And these sales and expenditures causeripples of related business activity, the reportsays: $242 million in manufacturing; $51million in banking, insurance and real estate;$46 million in transportation,communications and utilities. The studyestimates the total economic impact on thestate at nearly $2 billion a year.

Likewise, the Austin plant generates anestimated 5,600 jobs in businesses thatsupport or supply the processing operation,including 2,000 jobs in agriculture, 900 inmanufacturing and 400 in construction.

Animal farms under fireThe AURI-MDA study comes at acontroversial time in a rapidly-changinglivestock industry, says report co-authorHarold Stanislawski, an MDA dairy expert.

In 1999, the growth of large-scale feedlotsprompted the Minnesota Legislature to orderthe first-ever “Generic Environmental ImpactStatement on Animal Agriculture.” Disputesover feedlot permits, public objections toodor, and fears about manure spills and waterpollution have spurred local moratoriums onnew livestock enterprises. Farmers who wantto expand often find themselves at odds withneighbors, township and county boards, andzoning officials.

Growing up togetherThere’s a complex interplay between livestockproduction and processing, Sparby notes;each sector influences the vitality of the other.In California, for instance, big dairy farms andprocessing plants have grown up together,making California number one in milkproduction and number two in cheese.

In the turkey industry, where Minnesota leadsthe nation, most poultry farms are within 60miles of a processing plant. Companies suchas Jennie-O Foods, based in Willmar, havehelped push up Minnesota turkey production45 percent since 1990. What’s the multipliereffect of this expansion?

Currently, Jennie-O Foods’ six Minnesotaturkey plants employ about 5,300 workers,producing annual sales of $750 million andtotal economic activity of more than $2billion. Another 25 percent increase in saleswould boost the economic impact of theseplants by more than $500 million a year, thereport says. Employment would jump by 1,300and Minnesota turkey production would riseby $94 million.

Steep closing costsLocally, the Fergus Falls cheese plantillustrates the downside of that interplay. Theplant closed just a year after Dairy Farmers ofAmerica invested $1 million in the 1970s-erafacility, says Stanislawski, who lives in thecommunity and used to take visitors to thecheese plant whenever he wanted to show off"the might of Otter Tail County."

A contributing factor to the closing was aninsufficient local milk supply, says ToddJohnson, who owns a 60-cow dairy farm nearFergus Falls. “There wasn’t enough milk to runthe plant at 100-percent capacity.” Johnsonnow ships his milk to Melrose, 75 milessoutheast.

As the state strives to fashion wise animalagriculture policies, Stanislawski hopes theAURI-MDA study will clarify the economicstakes for rural Minnesota: “People don’tunderstand the magnitude of the opportunityto grow this industry, or the magnitude of thecrisis if it declines,” he says. “There’s noreplacement for this kind of commerce inrural areas.”

The new report, “Economic Impact of SelectedLivestock Processing Plants in Minnesota,” isavailable at www.auri.org ■

ANIMAL POWERHOUSEWhat happens to rural Minnesota if thelivestock processing industry declines? A new AURI study describes the economicmagnitude of meat and dairy processing.

A new AURI-funded study of Minnesota’s livestock processing industry, by the MinnesotaDepartment of Agriculture, uses data from six meat and dairy companies to project Minnesota’seconomic gains and losses from changes in the livestock industry.

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QUICK QUOTE: “We want to show that NuSun oil is comparable to and as healthful as olive oil.” — Ruth Isaak

BY DAN LEMKE

Bismarck, N. D. — Shoulder-high, vivid goldenheads arching toward the sun, sunflowerswere once revered by the Aztecs as a symbolof the sun itself. Nowadays, it’s not the sunnyhue that conjures up visions of gold forproducers — it’s the oil.

About 40,000 acres of oil sunflowers wereplanted in Minnesota this year. Nearly halfwere planted to “NuSun” varieties, which yielda light, amber oil that could be the next heavyhitter for the sunflower industry.

“We want to show that NuSunTM oil iscomparable to and as healthful as olive oil,”says Ruth Isaak, communications director forthe National Sunflower Association, based inBismarck, N.D.

Low in saturated fat, NuSun is amonounsaturated oil containing linoleic acid,an essential fatty acid. Since it does not needhydrogenation to remain shelf-stable, it is freeof trans fatty acids.

A human diet study, supported by AURI, isunderway at Penn State University. Thatresearch is expected to support health claimsmade for NuSun, although final results willnot be available until later this fall.

“We’re looking at common markers likecholesterol, LDL, HDL — also oxidationlevels,” Isaak says. “All of the subjects, eventhose not consuming NuSun, are eatinghealthy diets because we didn’t want to slant

the results.” The 32 participants will finish thediet portion of the study by the end ofOctober.

The National Academies of Science’s Instituteof Medicine now warns that people shouldreduce their intake of trans fatty acids toprotect against heart disease. An Institutepanel says there is no safe level of trans fats inthe diet. The FDA is expected to issue trans fatlabeling regulations by this fall or early nextspring. The National Sunflower Associationexpects the labeling to heighten bothconsumer and manufacturer interest inhealthier oils.

Not everyone is waiting for the results of a dietstudy or FDA regulations before embracingNuSun. Its fat profile and cookingperformance are already attractive to snackcompanies. Frito-Lay is test marketing sevensnack items cooked in NuSun oil; Procter andGamble uses NuSun in its Pringles andTorrengos snacks. Barrel O’ Fun and a varietyof other companies use NuSun.

While demand is good, supply is tight, raisingthe price for NuSun oil. That is generally good,but too short a supply can limit access toadditional markets. Isaak says the NSA ishopeful more acres will be planted to NuSunto keep pace with expected demand and tohelp the oil reach new markets.

“The price has to be considered against thevalues you are getting,” says Max Norris, AURIfats and oils scientist in Marshall. “One of the

biggest values for NuSun is that it’s very low intrans fats. Other oils have to be hydrogenated,which adds trans fats and will have to belabeled as such. With NuSun you have aready material with no trans-fats.That’s a great selling point.”

“If we can come through with amarket that buys the oil for aconsistent, fair price for theproducer, that will helpestablish a consistent acrebase,” Isaak says. The NSA ishopeful that farmers whohave left sunflowers for othercrops will reconsider. Severalherbicide-resistant varieties,developed withoutbiotechnology, will soon beavailable, which should makeraising sunflowers as easy asraising soybeans.

“Certainly there is demand for this oil,”Isaak adds. “Because of that, we hopeproducers look hard at sunflowers as aplanting choice ... there is room for moreacres.” ■

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This year, nearly halfof Minnesota’s 40,000sunflower acres wereplanted in NuSunvarieties, which yielda monounsaturatedoil that is free oftrans fatty acids.


QUICK QUOTE: “As baby boomers get older, they want to watch the birds in the backyard.” — David Pichotta

BY CINDY GREEN

Chaska, Minn. — St. Alban’s Bay beef tallow,millet and sunflower seed cakes may be forthe birds. But the packages they are wrappedin are for the profits.

Bill Gleason and David Pichotta, owners ofWildlife Sciences in Chaska, anticipate thatthe trim, cost-saving packaging on theirbirdseed-suet cakes will beat the competition.This fall, the partners are scaling upproduction to bring their improved line of St. Alban’s Bay “Suet Plus” wild birdfeed toretail chains throughout the United States.

Six years inThe venture started six years ago as a sidebusiness for Gleason, 40, and Pichotta, 47.Both are Twin Cities commodity traders whodeal primarily in ag byproducts — animal andvegetable fats, feather and bone meal, seeds,

dairy whey and other ingredients for livestockfeed, pet foods and industrial products. “Withall the consolidation in agriculture, it’s beengetting tougher for small, independentagents.” Mega-national companies “hire theirown brokers. They don’t need us,” Pichottasays.

The pair began looking for ways to add valueto the materials they traded, including beeftallow and seeds. Though at the time Gleasonsays he was only “moderately involved” inbirdfeeding (he now has “feeders all over theyard”), he knew the market was growingrapidly.

The partners acquired equipment to makebird cakes at a Wisconsin contract packager.They used traditional methods for their suetcakes: mixing melted beef tallow and birdseed— “the consistency of ketchup with nuts” —and pumping it into plastic trays. A colorfullabel, laminated with a thin layer of foil so

beef fat didn’t seep through, was heat-sealedon the clear blister-seal plastic tray — “similarto Matchbox Cars’ packaging,” Gleason says.

The cakes sold well in independent gardencenters and specialty stores. “But if you look atthe market, 75 percent of it is in the large boxstores and home centers,” Gleason says. “Youcan own the independents and still not havemuch market share. ... A couple years ago, wehad to make a decision: do we want to bumpthis company up?”

Working in the marginsPichotta and Gleason realized their productswere too expensive for large retailers, whichthrive on large volumes and thin margins. “Wehad more costs in the package — in cardboardand plastic — than in the ingredients.Everything else was minimized; we could onlyreduce on packaging.”

Although Gleason had some packagingknowledge as a former General Mills buyer, “Iwas not a packaging expert.” To investigateoptions, “we literally went to the grocerystores and grabbed anything that could hold apiece of suet.”

Wildlife Science’s banker told theentrepreneurs about AURI. “We sat down withJack Johnson and Max Norris, looked at thevarious packages in front of us and told themwhat we thought could be marketable,”Gleason says. “They narrowed it down to acouple of choices” that would worktechnically.

“They were asking all the right questions, sowe knew they had a good chance of success,”says Johnson, head of AURI’s coproducts labin Waseca. AURI helped Wildlife Sciencessource custom-designed equipment for itsnew packaging and move existing equipmentfrom Wisconsin to Chaska where the company

WRAPPEDUP FORPROFITWildlife Sciences redesigns its birdseed cakes to get a wing up on the competition

Wildlife Sciences owners Bill Gleason and David Pichotta displaybirdseed cakes, sporting trim new packaging, that they expect toplace in large retail chains across the country.

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QUICK QUOTE: “They were asking all the right questions, so we knew they had a good chance of success.” — Jack Johnson

opened a processingplant a year ago.

Cake packspeel likecandy bars“We now use plasticroll film thatreplaces two (plastic)pieces and thecardboard. Thatreduces the cost by20 percent,” Gleason says. The pair stumbledonto other useful attributes of the newpackaging. The label can be printed directlyon the plastic rather than on a foil card, soinformation can be printed on the top,bottom and sides of the package. “We canprint birding tips on back, and if our productsget knocked over or piled on top of eachother, there is still printing in view. Ourcompetitors can’t do that. We’re the only oneswith this type of packaging.’’

From a handling perspective, “suet beef fat ismessy. Consumers don’t like taking it out ofthe box; you get stuff in your fingernails orhave to use gloves. With the roll film, thesepeel open like candy bars; there’s no mess.And there’s less waste — one wrapper tothrow away.”

Pouring slippery suet cakes into plastic rollfilm was a challenge, however. The creamyproduct “is easier to put in a tray. Theengineering was much more difficult than wethought.”

AURI chemist Rose Patzer helped formulate afirmer cake that could endure warmtemperatures, and Johnson helped improvethe packaging process.

In time for cool weatherThe new-and-improved suet cakes, with anaverage retail price of one dollar each, arebeing introduced in retail chains, such as

Hardware Hank, in time for prime bird-feeding weather. “It’s a seasonal business;people generally feed birds in colder weatherwhen they need energy from the suet, orduring migration times: fall and spring.”

St. Alban’s Bay birdseed cakes come in fourvarieties — peanut, sunflower, nut and berry,and wild bird blends — various mixtures ofmillet, cracked corn, sunflower seeds, peanutsand grain byproducts. All the tallow is fromMinnesota and, except peanuts, the seeds andgrain come from Minnesota and the Dakotas.“They are processing close to thecommodities they’re using — buying at theright price and selling into a high value-addedmarket,” Johnson says.

The company also sells green enamel cagefeeders to hold the 4-inch square, 1-inch thicksuet cakes. The original packaging still sells atindependent retailers where the company hasa loyal customer base. As production expands,“we may also private-label for some of thelarger guys.” Nationally, Gleason says, thereare only five or six major birdseed producers.The biggest, in Iowa, controls 50 percent ofthe market.

The side venture is becoming a full-fledgedbusiness enterprise. “Our company takesmore of our time; we have less time fortrading,” says Gleason, who is in charge ofsales and administration. They still do sometrading, says Pichotta, who handlespurchasing and plant management. “It helpskeep us in touch with the markets” — withprices and the availability of fats, seeds andnuts.

The entrepreneurs are tapping a nationalwild-birdseed market that exceeds $2 billionin annual sales. Spending on wildlife watchinghas surpassed hunting, they say. “As babyboomers get older, they want to watch thebirds in the backyard,” Pichotta says. “It’s big;it’s growing.”

For more information on Wildlife Sciencesproducts, visit www.suetplus.org ■

AURI assistance toWildlife Sciences hasincluded:

• Product analysis

• Recipe reformulation

• Package upgrading

• Process development

• Equipment sourcing

• Label design and printing assistance

AURI at work

Jack Johnson, head of AURI’s coproducts plant in Waseca, has helped Wildlife Sciencesimprove its production processes.

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QUICK FACT: No other sector of the U.S. livestock industry has declined as dramatically as sheep.

Beet pulp and pig feed AURI and U of M regionalcenters work together on agresearch projects

BY DAN LEMKE

Waseca, Minn. — For some folks, the subjectsof sugar beet pulp and swine nutritiongenerate an attractive force. Witness thebringing together of the AURI Southeast FieldOffice and the University of MinnesotaSouthern Research and Outreach Center.

Although AURI is located on the property ofthe Research and Outreach Center, and bothorganizations share the common ground ofagriculture, they have separate missions.SROC seeks to provide producers with

unbiased information on crop and livestockproduction, while AURI strives to add value tothose commodities by developing new usesand new markets. But when those paths cross,partnering enables both entities to meet theirgoals.

Provender for pigsA case in point: the AURIcoproducts utilization labprocessed some of the feed used in a recentSROC swine nutrition study. Normally notinvolved in feed projects, AURI’s interest waspiqued because one of the ingredientsshowing positive results is a byproduct froman ag processing operation.

“In this case, the feed is used in trials atdifferent stages of swine nutritional needs,”says Al Doering, a researcher at the Wasecalab. “Positive results could mean significantuse of a product that right now has low value.

That would be great for a company lookingfor ways to utilize one of their coproducts.”

“It’s a win-win situation,” says Sam Baidoo,who heads up the SROC’s swine nutritionefforts. “Our research is looking at utilizing agfibers to improve the animals’ gut health andreduce antibiotics. The exciting part is that it’sworking.”

The collaboration works because AURI hasequipment and expertise to produce the feed,while the SROC has the hogs and theknowledge to evaluate the results.

Shaping the feedAnother collaboration between AURI andSROC involves the feed’s physical shape. AMinnesota livestock company came to AURIwith a new technology related to the form ofthe livestock feed. Having shown positiveresults in poultry, the feed is now being testedon hogs.

“Swine performance based on the shape ofthe feed could open up new uses forcoproducts,” Doering says. “There’s a ‘scratchfactor’ that improves the health of theanimal’s stomach. Currently they are usinggrain, but you could also use coproducts.”

Whether developing feed products for aresearch project or teaming with economicdevelopers to jointly assist a venture,“collaboration” is a mantra often sounded byAURI Executive Director Edgar Olson.

“It’s important for us to partner with others sowe can maximize our resources and helpmove projects forward,” Olson says. “It’sespecially important during times whenresources are tight for all of us.”

“We’re able to do things others can’t, and theymay have resources that we need,” addsDoering. “In the end, what’s important is thattogether we’re able to impact Minnesotaagriculture in a positive way.” ■

BY E. M. MORRISONFifty years ago, there were eight million stocksheep in Montana, North and South Dakotaand Minnesota. Now, there are fewer than onemillion.

In an effort to help revive the Midwest’swaning sheep industry, AURI and theMinnesota Department of Agriculture areencouraging lamb producers from three statesto form a regional marketing group, such asan LLC, LLP or cooperative. The group wouldhelp sheep farmers grow a uniform, consistentproduct, sell lamb more profitably, andexpand their operations.

An ad hoc group of farmers, scientists andagriculture officials from Minnesota and theDakotas has been meeting for a year to planthe marketing effort. Now the leaders areasking local lamb producers to join in.

“It’s a super idea — working together towardsthe common goal of increasing lambproduction and consumption,” says steeringcommittee member Bill Head, director ofsheep research at the West Central Researchand Outreach Center in Morris, Minn.

No other sector of the U.S. livestock industryhas declined as dramatically as sheep, Headsays.

Over the last 50 years, sheep farm receipts fellnearly three-fourths, according to the USDA.In Minnesota last year, sheep and lambreceipts were just $11.5 million — one-tenthof one percent of farm revenues.

What happened to all the sheep? “It’seconomics,” Head says.

High costs, soft demandRising labor and feed expense, restrictions onpredator control and limits on public grazing

have all pushed up lamb production costs.

Meanwhile, commodity prices for meat andwool have fallen sharply. New synthetic fiberscut into demand for wool, once the mainproduct of the U.S. sheep industry. “We usedto say lamb was a byproduct of the woolindustry,” Head says.

Demand for meat has plunged, too. AnnualU.S. lamb consumption is down to one poundper person. “We have two or three generationsin this country who have never even triedlamb, never been exposed to it.” Unlike thebeef, pork and chicken sectors, Head adds, thelamb industry failed to develop fast food fareor new processed products.

U.S. lamb costs more than other meats, too.“That’s the main problem in marketing lamb,”Head says. “Most consumers buy meataccording to price.” In addition, Americanproducers face tough price competition fromimported lamb. Farmers in Australia and NewZealand raise and ship lamb year-round forless than it costs to grow it here.

A few bright spotsThere are some encouraging developments inthe lamb industry, says Dennis Timmerman,AURI project director in Marshall.

Domestic lamb gets high marks for flavor andtenderness, he says. And recent immigrantsfrom Africa, Asia and Mexico, where lamb is astaple food, are expected to spark moredemand.

New ewe price supports are encouragingfarmers to expand their flocks. The recentfarm bill includes federal subsidies for wooland premiums for carcass quality and out-of-season marketing. In addition, a new check-off program will provide money for nationallamb promotion.

Even in today’s difficult climate, Head says,skillful farmers can make a profit raisingsheep. In field trials at the Morris researchstation, for example, five lamb-ewe pairs peracre of dryland pasture produced net returnsof $145 per acre, minus land costs. “That’sbetter than corn,” Head says.

Why work together?Most of Minnesota’s 2,400 sheep farmers raiselamb as a hobby or sideline, not as alivelihood. Flocks tend to be small — 40 to 50ewes — and often have “six or eight differentbreeds,” Head says. “It’s hard to get aconsistent product that way.” Lackingefficiency, small growers struggle to covertheir costs, especially if they sell on the spotmarket.

Producers could gain an advantage bystandardizing production and marketing theirlamb together, Timmerman says. That is whatsome southern Minnesota sheep farmers aredoing, says Al Doering, a lamb producer fromGood Thunder and a researcher at AURI’scoproducts lab in Waseca.

Doering and his father run a 250-ewe flock,raising about 400 market lambs per season.He belongs to a marketing group that sells20,000 fat lambs a year. Members grow thesame breeds and use similar productionmethods, Doering says. This assures the lambsmeet exacting carcass criteria and provideconsistent meat yield.

In spite of the soft demand, Minnesota“processors still can’t get enough lambs,”Doering says. It’s one of the few commodities“where we could double our numbers and still

find a market.” But to win processingcontracts, farmers must be able to guaranteevolume and uniform quality — “lamb that willcut out exactly like it did last year and the yearbefore.”

Timmerman says the success of the groupDoering is involved in could be duplicated ona multi-state scale: “If growers cooperate, theycan tap markets they can’t get into now. Largernumbers would help them get into higher-value markets.”

In addition to marketing clout, a multi-statecooperative would have the muscle to:

■ develop uniform standards for “natural”production,

■ identify specialty markets,

■ assemble performance and genetic data,

■ find new uses for trim,

■ form alliances with other cooperatives,distributors or retailers.

The leaders of the initiative have alsodiscussed other goals, such as cooperativefinishing, centralized processing, feeding andnutrition standards, and consumer educationcampaigns.

Calling all championsThe project’s steering committee has begunexploring organizational structures. This fall,“we’re trying to interest at least three dozenMinnesota producers in the project,” saysTerry Dalbec of the Minnesota Department ofAgriculture. “We’re looking for projectchampions” who will lead the effort beyondthe discussion stage.

Timmerman says there is strong interest fromDakota farmers. Now, “it’s important thatproducers in Minnesota come forward.”

For more information about the multi-statecooperative, contact Dennis Timmerman atAURI, (507) 835-8990, or Terry Dalbec at MDA,(651) 215-0368. ■

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ERGStrength in numbers

AURI is leading an effort to bring Minnesota lamb baaack


BY JOAN OLSON

Editor’s note: As a service to our readers,we provide news about the work of othersin the ag utilization arena. Often, researchdone elsewhere complements AURI’s work.Please note that ARS is the research arm ofthe USDA.

Kenaf’s along for the rideKenaf is a fiber source for low-grade paper,particle board and oil absorbents. But kenaffiber may find its way into car interiors aslightweight insulation against road noise. Oneadvantage of kenaf is its low density — morefiber for less weight. Kenaf fiber’s many poresalso serve as a natural trap for sound waves.

Source: Dharnidhar V. Parikh, USDA-ARS SouthernRegional Research Center, New Orleans, LA, (504) 286-4406, [email protected]

From swine to swimmersFour years ago, Robert Harrison of Hurdland,Mo., switched from hog production to fish.Between restocking lakes and ponds andsupplying food fish to niche markets,Harrison’s balance sheet has gone from red toblack; his biggest problem is keeping up withdemand.

Source: Robert Harrison, (660) 423-5482.

Corn’s positive energy balanceA Michigan State University study findsethanol from corn has a positive net energybalance. MSU chemical engineer Bruce E.Dale’s work contradicts the earlier work ofCornell University’s David Pimentel, whoseresearch has been cited by critics of ethanolproduction. Dale notes Pimentel’s report usedinaccurate and old data regarding corn yields,energy inputs and byproducts.

Source: www.AgWeb.com

Color Cargill Dow greenCargill Dow, LLC received the PresidentialGreen Award in June for its NatureWorks PLAprocess to make plastic from corn. TheNatureWorks technology uses up to 50

percent less petroleum resources thancomparable plastics. In addition, PLAgenerates 15 to 60 percent less greenhousegases.

In April, Cargill Dow opened the first world-scale manufacturing plant for PLA in Blair,Neb. At capacity, the plant will produce morethan 140,000 metric tons annually forcustomers in North America, Europe andJapan. Companies such as Coca-Cola, Sonyand Dunlop are already using NatureWorksPLA in products and packaging materials.

Source: www.cargilldow.com.

The world likes windy DakotasInformational meetings on wind energy wereheld in several South Dakota communities inJuly. Senator Tom Daschle says developersfrom around the world see South Dakota as apotential location for large-scale wind energydevelopment.

Source: http://biobased.org

Straw earns bucks in TexasSome Texas farmers are earning an extra $36per acre by selling wheat straw to AffordableBuilding Systems in Whitewright, Texas. ABSconverts straw into building panels, primarilyfor commercial office construction.

The composite panels’ advantages includesound and fireproof qualities, easyinstallation and adaptability, and costsavings. ABS is one of four companies invitedto travel to Washington, D.C. to bid on thePentagon’s renovation.

Source: Delta Farm Press, July 12, 2002.

Seize the carbonLouisiana-based Entergy Corp. has agreed to lease sequestered carbon credits from the Pacific Northwest DirectSeed Association as part of a pilot program to offset carbon emissions from Entergy’spower plants. More information on carbon sequestration can be found atwww.fe.doe.gov/coal_power/sequestration/index.shtml.

Source: Cooperative Partners, May/June 2002.

Switching to grassAlliant Energy is testing small amounts ofswitchgrass as an alternative to coal at itsOttumwa generating station in Chilicothe,Iowa. Eventually, switchgrass could comprisefive percent of the fuel burned at the station.About 80 farmers are involved in the project,which is managed by Chariton ValleyResource Conservation & Development, Inc.,of Centerville, Iowa.

Source: Hay & Forage Grower Magazine, December2001.

Biodiesel boomThe State of Minnesota will require a two-percent blend of vegetable-oil or animal-fatbiofuel with diesel fuel by June 2005, sooner ifcertain production levels are met. WhileMinnesota is the first state to mandate abiodiesel blend, it is unlikely to be the last.Such legislation is being considered by theU.S. Congress and other states. Legislation isalso pending to provide tax breaks sobiodiesel can compete with petrodiesel.

Source: Rural Business and Co-op Newsletter, Spring2002; Doanes Agricultural Report, June 14, 2002.

Bread of soyAn Ohio State university researcher hasdeveloped bread with 6.25 grams of soyprotein per serving. Seventy percent of taste-test participants preferred it to a wheat bread.Food manufacturing giants as well asneighborhood bakers may license the recipefrom OSU.

Source: Illinois Soybean Farmer Leader Newsletter,May 2002.

Soy gel plays ballResearchers at Southwest Texas StateUniversity have formulated a soy-gel ink foruse in inexpensive ballpoint pens. Made withsoy resin, the new ink performed well in earlytesting and may be an economical alternativeto ink made with petrochemicals.

Source: Illinois Soybean Farmer Leader Newsletter,May 2002.

Butter from the sunSunbutter, ground from sunflower seeds, is afresh alternative to peanut butter, to whichsome people are allergic. It was developedthrough an agreement between ARS and RedRiver Commodities, Inc., Fargo, N.D.

Source: Doane’s Agricultural Report, June 21, 2002.

Landlocked ginsengOhio State University researchers areattempting to grow American ginseng andother non-timber forest products in order toboost profits for farmers raising alternativecrops.

According to the USDA’s NationalAgroforestry Center, prices for wild-simulated ginseng have risen high enough tobe profitable for landowners with suitableland. Buyers pay between $300 and $400 perpound for wild ginseng root, compared to $10to $15 for greenhouse-cultivated roots.

It takes about nine years to grow a marketableginseng root. According to the AgroforestryCenter, a half-acre of wild-simulated ginsengcould yield a net profit of $16,300 over a nine-year period.

Source: Rafiq Islam, Ohio State University, (740) 289-2071, [email protected].

Eco to the EastRecent declines in cost and increasedemphasis on eco-friendly products have ledto greater use of “green” plastics in Japan.

Bioplastics have also become more resilientand are making their way into electronicsproduct casings such as those in Walkmansand personal computers.

Source: Financial Times Limited.

Milk fat comes out fightingMilk fat, maligned as a heart-diseasecontributor, produces a potent cancer-fighter,say Ohio State University scientists. Using labmice, the scientists found that about half ofthe vaccenic acid consumed in milk fat ismetabolized into conjugated linoleic acid, apowerful natural anti-carcinogen. Theprocess is called desaturation.

Source: Don Palmquist, Ohio State University, (330)263-3795, [email protected].

Other than wood ...About 250 native Minnesota plants aresubject to commercial or hobby harvest,according to a new University of MinnesotaWeb site titled “Non-Timber Forest Productsand Implications for Forest Managers.” Fourbrochures are available that detail theproduction and marketing of specialtyforestry products.

Source: University of Minnesota Extension Service, 1-800-204-1295, www.unl.edu/nac/news/htmlwww.extension.umn.edu/environment,

Believe it’s betterThe Better Bean Initiative is a checkoff-funded program designed to accelerate thedevelopment and availability of U.S. soybeanswith enhanced oil and meal composition.Over the past three years, BBI has been thefocus of ARS scientists at nearly a dozenlocations. The first variety developed throughBBI is “Satelite,” which produces half the

Elsewhere in ag utilizationAURI rounds up news of ag innovations from around the nation.

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BY JENNIFER PENA

Come explore the commodities in youreveryday products. The following sites aresure ways to get growing and processinginformation, with tidbits on new food andnonfood uses for these commodities. Andcheck www.auri.org for news aboutMinnesota agriculture.

Corn’s zillion useswww.ontariocorn.org/products.html

The Ontario Corn Producers have a handypage if you’re looking for corn trivia. A “ZillionUses For Corn!” is a list of the ways we usecorn today, with product information andphotos. The OCPA site also has plenty ofother resources on corn, such as marketprices, news releases, facts and figures andlinks.

All the soy in the worldwww.indianasoybeanboard.com

Want to cook up some soy chili? Indiana’sSoybean Board has the goods on everythingsoybean, including a list of soy-basedproducts and foods. Read about soy candles,crayons, biodiesel, ink or road dustsuppressant; check out student contests onsoybean inventions; or sign up for an e-mailnewsletter. There’s also a “Beautiful Farms ofIndiana” art contest page featuring colorfuldrawings using soy-based crayons.

Grains in Edenwww.edenfoods.com/info/foodinfo.html

If you’re looking for quick-loading infowithout the frills, this page is for you. TheEden Foods company has dedicated somebasic pages to whole grains such asbuckwheat, amaranth and barley. You’ll get adescription of the crop, information on whereit’s grown and what it’s used for, somenutritional information and a basic recipe.

Wheat by Caitlinwww.rochedaless.qld.edu.au/wheat.htm

Students from the Rochedale State School inAustralia have added their projects on varioussubjects to the school’s site. One project,Wheat by Caitlin, is an overview of how thecrop is grown, along with some productionnumbers. There is also a section on foodproducts containing wheat and a map ofwhere wheat is grown in Australia. Otherprojects featuring Australia-growncommodities include cotton, pigs and angoragoats.

The beets go onwww.geo.msu.edu/geo333/sugarbeets.html

This site features an interview with aMichigan Sugar employee and explores thehistory of sugar and sugar beet production.Read about other uses for sugar beets, such asanimal feed, view a close-up photo of a beetand a 1939 sugar-beet farm, and see a map ofwhere U.S. beets are grown. ■

QUICK FACT: Back issues of AG INNOVATION NEWS are available at www.auri.org

saturated fat and linoleic acid of conventionalvarieties. Oil from Satelite is being tested byfood manufacturers.

Source: Progressive Farmer, July 2002.

Pondering sweet potato pies Southern Growers, Inc. in Mason, Tenn. isusing a $150,000 market development grantfrom the USDA to develop business andmarketing plans for processing sweetpotatoes into retail products, particularlysweet potato pies.

Source: www.rurdev.usda.gov/rbs/coops/vadg.htm.

Hungry for TSP?Textured soy protein (TSP), a nutrient-densefood, is being used to meet the nutritionalneeds of the world’s hungry, thanks in part tothe checkoff-funded World Initiative for Soyin Human Health (WISHH).

TSP is currently being distributed by reliefagencies in Guyana and is in school lunchtrials in the Republic of Georgia. In Botswana,a program incorporating soy into local foodsis being developed. WISHH holds trainingworkshops for volunteer organizations toshow them how to include soy in food reliefprograms.

Source: Illinois Soybean Association, Theresa Miller,(309) 663-7692, [email protected].

Loving the localsConsumers choose locally grown foodbecause it’s fresh — and to support smalllocal farmers. They are also more willing topay higher premiums for “locally grown” than“organic,” according to a new University ofMinnesota analysis by Luanne Lohr. Herreport is available on the Minnesota Institutefor Sustainable Agriculture Web site atwww.misa.umn.edu.

On a related note, the directory forMinnesota-grown produce can be found atwww.minnesotagrown.com.

Source: Luanne Lohr, (706) 542-0847,[email protected]

So many uses, so many alfalfasPlant breeders at the ARS Plant ScienceResearch Unit in St. Paul, Minn. aredeveloping alfalfa varieties for niche markets.Varieties under development include one forbioenergy, one with a higher nutritive valuefor cattle forage, and others for growing onmarginal soils, for fixing more nitrogen in thesoil, for remediating excess fertilizer andpesticides, and for producing industrialproducts, including medicine, industrialenzymes or plastics.

Source: Don Comis, ARS Information Staff, (310) 504-1625, [email protected] ■

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QUICK QUOTE: “The success of our industry is a testament that small, family-owned businesses ... can succeed.” – Jim Wilson


BY DAN LEMKE

Move over, soybeans. Minnesotaproducers may want to add hostas,lilies and river birch to their crop

rotations.

An industry appraisal spearheaded by theMinnesota Nursery & LandscapingAssociation reveals that Minnesota’s nurseryand landscape business is a multi-billiondollar industry that grew 97 percent over thepast five years.

The recent study shows the state’sprofessional green industry generates yearlysales of more than $2.1 billion. About $350million comes from trees, shrubs, annuals,perennials and potted plants grown on morethan 22,000 acres. An additional 13 millionsquare feet of greenhouse space is used togrow everything from azaleas to zinnias.

“One intent was to benchmark the impactthis industry has in Minnesota,” says MichaelSparby, project director for AURI, one of thestudy’s sponsors. “But we also wanted to takea look at opportunities. ... In most cases you’redealing with a higher-value specialty crop thatcan be grown on smaller acreages.”

Bloomin’ fastAccording to USDA’s Economic ResearchService, the nursery and greenhouse industryis the fastest growing segment of U.S.agriculture. Nursery and greenhouse cropsrepresent the second most important sector— ranking seventh among all commodities incash receipts, but among the highest in netincome.

“There are many factors why the industry hasgrown, including the housing boom,” saysBob Fitch, executive director of the MinnesotaNursery and Landscape Association. “Thestrong economy from 1995 to 2000 meant alot of people had disposable income to spendon their homes. Now, with the weakereconomy, people are staying home and takingcare of their yards. Even this year, our industryhas remained strong.”

The study anticipates that over the next fiveyear, demand for annuals and perennials willincrease by 30 percent and demand for treesand shrubs by 47 percent.

Specialty crops grown in Minnesota can beexported as well. Last year, nearly $100million in plants and landscaping servviceswere sold to other states and another $5 million in plant materials were exported toCanada.

Here to stayIn addition to substantial sales, the industry isa major employer with more than 10,000 full-time employees and 18,000 seasonal and part-time workers.

“The success of our industry is a testamentthat small, family-owned and operatedbusinesses can be created and can succeed.Most of our industry’s companies have fewerthan 10 full-time employees, yet collectivelywe provide 28,000 jobs. We’re a stable andgrowing part of the Minnesota economy,” saysJim Wilson, MNLA president. Wilson ownsand operates wholesale tree farms inChanhassen and New Germany, Minn.

The economic impact study was the firstcomprehensive review of the state’sprofessional green industry. Data wasanalyzed at St. Cloud State University. Projectpartners included AURI, the MinnesotaDepartment of Agriculture, AgStar FinancialServices and the University of Minnesotahorticulture department. ■

A blooming futureStudy reveals growing potential for landscape and nursery crops

Minnesota’s $2 billion nursery and landcaping industry, which includes22,000 acres of perennial production (top left), landscape services such asinstalling decorative retaining walls (top right), and 13 million square feet ofgreenhouse space (bottom right), grew 97 percent over the past five years.

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QUICK QUOTE: “Many of (the ag fuels) are more economical to burn than wood, oil and natural gas.” — Jack Johnson

BY GREG BOOTH

Waseca, Minn. — When a solid-fuel stove manufacturerwanted to compare the heat energy values of renewablefuels, he couldn’t find a chart to look them up. So AURIscientists Jack Johnson and Al Doering decided tocreate one.

“We believed there was a need,” Johnson says. “There’sbeen an explosion of companies looking for renewablefuels. Wood has been the classic used for years, but nowwith more pressure on that, and higher prices, many agproducts have become competitively priced.” (See AgInnovation News, July 2002)

Stove manufacturers, mining operations, utilities andother fuel buyers can use the AURI Fuels Initiative’schart to compare Btus (British thermal units), ash andsulfur for 25 ag-based fuels, from alfalfa to wheat. “Thisinformation hasn’t been available anyplace in thecountry in any one spot, so this is really cutting edge,”Johnson says.

Heat of the matterValues testing was done at three labs — MinnesotaValley Testing in Bismarck, N.D., Twin Port Labs inSuperior, Wis., and AURI’s lab in Marshall, Minn. Asnumbers started coming in, significant differences wererevealed, Johnson says. The Btu value for high-oil corn,for example, is about four percent higher than shellcorn. Dried distillers grain, a byproduct of ethanolplants, also has a relatively high Btu value.

“One of the best looking biomasses right now is drieddistillers grain,” Johnson says. Due to the growth ofethanol plants in the Midwest, distillers grain is

receiving a lot of focus from companies utilizingrenewable fuels, Doering adds.

Values were calculated for products with moisture andthen recalculated on a dry-matter basis. Moisturelowers Btu value because energy must be used to drythe fuel before burning. A dry-matter comparison helpsfuel buyers compare products, Doering says.

The chart does not include cost per Btu, the researcherssay, because those costs vary based on market prices,volume purchased and transportation. Johnson says hewill work with individual clients to help determinecosts.

Cost-effective fuelThe tested products came from a geographically smallarea in southern Minnesota, Doering emphasizes, soactual ag fuel performance could vary. Costeffectiveness of any fuel, he says, varies due tomoisture, seasonal changes, transportation and theform in which the fuel is burned. Johnson says thefigures should be used to “compare relative combustionspecifications.”

“Many of (the ag fuels) are more economical to burnthan wood, oil and natural gas,” Johnson says. Whilecoal is still cheaper, most renewables “burn muchcleaner” and are blended in to meet emissionstandards.

Steel plants and utilities are some of the potentialrenewable fuels users; home use includes pellet andcorn stoves.

The fuel chart is available from AURI’s Waseca office andis posted on AURI’s Web site: www.auri.org ■

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AURI fuels initiative compares the heat values of popular ag fuels

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