Published On: 12.01.24 | 

By: Jerry Underwood

Alabama’s ag, food products sector surges with major investment projects

Mark Smucker, the president and CEO of J.M. Smucker Co., walks with Alabama Gov. Kay Ivey at the opening of a $1.1 billion manufacturing facility in McCalla. (contributed)

When the J.M. 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’s energizing Alabama’s key agriculture and food products sector.

Since early 2021, more than 50 growth projects in this sector have launched statewide, paving the way for more than $3.5 billion in new investment and creating more than 2,500 jobs, according to Alabama Department of Commerce data.

The agriculture and food products sector’s growth potential resulted in its designation as one of eight priority target sectors for recruitment in Alabama’s new economic development strategic plan, Catalyst.

“Alabama’s agriculture and food products sector is not only a vital part of our state’s heritage but also a key driver of our economic future,” said Ellen McNair, secretary of the Alabama Department of Commerce. “The growth we’re witnessing across this sector underscores Alabama’s competitive advantage as a premier location for food production and agricultural innovation.

“With continued investment and support, we’re creating opportunities for high-quality jobs, expanding our reach in national markets and strengthening our local communities,” she said. “This sector has incredible growth potential, and we’re committed to fostering an environment where Alabama’s agricultural and food industries can 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 Nov. 7 grand opening of Smucker’s 900,000-square-foot facility in McCalla showcases that potential — the project, announced in November 2021, is eventually expected to generate 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 targeting $1 billion in annual sales by 2026.

“On behalf of our company, I would like to extend our appreciation to the state of Alabama and Jefferson County officials for their partnership. I would also like to share my thanks to the tremendous team here in McCalla for their hard work to open the facility,” said Smucker, who was on site for the ribbon-cutting ceremony.

Other recent high-profile projects in the sector include:

  • Coca-Cola United Bottling announced plans in May to invest an estimated $330 million to construct a new headquarters and production/distribution facility in Birmingham’s Kingston community. The project is expected to create 50 new jobs while retaining more than 750 positions in the Magic City.
  • Conecuh Sausage, a well-loved Alabama brand for nearly a half-century, kicked off a project in February to invest almost $58 million to open a second production facility in the state. The company is creating 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 facility in Dothan, where the New Mexico-based company will create 120 jobs in Alabama’s Wiregrass region.

Alabama’s agricultural landscape sets a robust foundation for both farming excellence and food and beverage production facilities.

Each year, the state readies its expansive agricultural terrain, covering about 8.3 million acres across 39,000 farms, to yield a rich variety of crops and products. This bounty includes leading outputs in freshwater fish, poultry, peanuts and pecans.

With annual cash receipts approximating in the billions of dollars each year, Alabama serves a pivotal role both in farming and as a hub for food processing and production.

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

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

Rural impact

Peanuts are an important part of rural Alabama’s economy, contributing more than $210 million annually while accounting for 3,000 jobs. Peanuts are grown in 37 of Alabama’s 67 counties, including many rural counties.

Today, HudsonAlpha scientists are doing innovative research aimed at producing healthier peanut harvests, partnering with the state’s farmers and agricultural industry leaders on genomic projects involving peanuts. The goal is to develop peanuts that can resist diseases and survive drought.

“Our work is not just about science; it is about improving people’s lives,” Dr. Josh Clevenger, a scientist involved in the project, writes in a blog post. “Peanuts are a vital crop for millions 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 of the Wiregrass. The Wiregrass community has embraced us and partnered with us to help create something special.”

In addition, the Huntsville institute has launched the HudsonAlpha AgTech Accelerator that seeks to bolster Alabama’s ability to translate agriculture technologies into commercial products that will 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 farming, 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, the Department of Commerce’s rural development manager.

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