December 12, 2002

Value-Added Processing Center Aimed at Diversifying Income Base and Creating Jobs

A value-added processing center at North Dakota State University designed to enhance the income potential of North Dakota crops has been proposed and approved by the State Board of Higher Education, according to Sam Chang, a North Dakota State University food scientist.

"The majority of North Dakota crop production is shipped to other states or countries for processing into value-added consumer products," Chang says. "Local growers are under tremendous pressures caused by low bulk commodity prices, and are looking for ways to engage in processing to add value to their crops. Without this ability, the number of North Dakota farms is going to continue to decrease."

"There is limited value-added processing already going on in the state, but North Dakota needs to do more," Chang says. "Most of the food and agricultural processing firms in North Dakota are small, and don’t have the research facilities and scientific expertise to engage in technical research to improve processes or products to compete in the marketplace, or to expand their markets." That’s a role the Value-Added Processing Center could fill.

"The Value-Added Processing Center will be a state research and development base to assist existing companies and new entrepreneurs in the development of superior products to compete in the marketplace as well as to provide technical information to enhance the trade of value-added agricultural products," Chang says. The Center would also provide information, technical and technology support for the private sector and serve as a catalyst to transform the agricultural economy.

"This is a long overdue step," Chang says. "There are already many other organizations similar to this operating and helping their local producers take that next step. Oklahoma’s Food Research Center, Nebraska’s Food Processing Center and Iowa’s Center for Crops Utilization Research spring to mind. They give those markets an edge over North Dakota’s."

Chang envisions a cooperative entity that combines the strength of NDSU’s agriculture, food processing and food safety institutions, the Northern Crop Institute’s international marketing programs, and complements the Institute of Business and Industry Development’s efforts to expand business opportunities and productivity.

Funding for the Value-Added Processing Center will be under consideration by the North Dakota Legislature. In the meantime, Chang has already been helping some North Dakota businesses and producers. "We are limited in what we can do right now," Chang says. "We have been able to provide guidance and help some businesses get some funding from sources such as the North Dakota Agricultural Products Utilization Committee, a state entity geared toward creating new employment and economic expansion through expanded use of North Dakota agricultural products. We are also carrying out some product testing."

Chang is optimistic about the future of value-added processing in North Dakota. "This is the best way of combating the marginal profits producers are getting for bulk commodity crops," he says. "The potential benefits for the North Dakota economy could be significant, as well as those for producers and entrepreneurs."

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Source: Sam Chang, (701)231-7485, kow.chang@ndsu.nodak.edu
Editor: Tom Jirik, (701)231-9629, tjirik@ndsuext.nodak.edu
Writer: Scott Lowell, (701)231-7865, slowell@ndsuext.nodak.edu