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Reshoring describes the process of bringing production and manufacturing “back home” or returning it to the country where it was first established.
Historically, organizations have opted to offshore their operations to reduce costs, increase efficiency, and drive competitive advantage. But in the wake of COVID-19, which impacted global supply chains, many companies are again reshoring manufacturing.
In 2021, 261,000 new jobs were created in the U.S. due to reshoring initiatives.
The Reshoring of Food Supply Chains
Food supply chains were hit especially hard by the pandemic. Tighter border controls and freight restrictions, for example, made it difficult and much more expensive for organizations to transport fresh produce. In some instances, crops were left to rot in fields due to labor shortages.
Production rates at food processing plants stalled due to stringent social distancing regulations and factory shutdowns, while grocery stores struggled to adapt their supply chain management and procurement strategies to meet shifting consumer demands.
In 2022, the food supply chain remains under significant strain. Shipping containers are in short supply in parts of Asia, natural disasters are affecting crops and commodities, and the great resignation has caused widespread labor shortages. In addition, Russia’s invasion of Ukraine resulted in skyrocketing oil and gas prices, which is impacting both agricultural production and transportation.
Players in the food industry may be able to minimize the impact of current and future disruptions by reshoring (or onshoring) production in the United States. This also promises to drive production efficiencies, improve product quality, boost local economies, reduce greenhouse gas emissions, and limit dependence on preservatives.
This guide will be regularly updated to include the latest news on reshoring and onshoring in the food industry. The most recent updates appear at the top of the article.
November 2022
Schwan Expands Pizza Manufacturing Plant
Food producer Schwan reveals plans to expand its pizza manufacturing facility in Salina, Kansas. This will grow the distribution center by 140,000 square feet, creating 225 jobs. The facility will also be used to store food manufactured at the site.
October 2022
Ziegenfelder Company Launches New Texas Factory
Manufacturer of frozen desserts, the Ziegenfelder Company, invests $29 million in a new factory in Lockhart, Texas. The development and launching of the facility will create 100 jobs and produce the company’s Budget Saver Assorted Twin Pops, also known as the Rainbow Array.
Diamond Pet Foods to Open Facility in Indiana
Diamond Pet Foods reveals its plans to develop a $259 million facility in Rushville, Indiana, in 2024. The project will create 170 jobs and enable the company to increase its customer output in the Midwest, where increased pet ownership has grown demand for pet food.
SnackCraft Establishes U.S. Headquarters in Kentwood
SnackCraft, which manufactures natural baked snacks, reveals it will locate its U.S. headquarters in Kentwood, Michigan, and open a manufacturing factory at a former Kerry Foods facility. The project, which has been valued at $41.75 million, is expected to create 185 jobs.
July 2022
Carolina Precision Foods Announces New Processing Plant
Carolina Precision Foods’ new processing plant in Florence, South Caroline, is part of a $10 million project that will collaborate with local poultry processors and create 402 jobs. It is believed that the site’s proximity to major highways will enable the company to process fresh chicken for more than 19 million consumers daily.
June 2022
Do Good Foods (DGF) Establishing Operations in Indiana
Do Good Foods (DGF), a sustainable foods producer, will invest $100 million to establish a feed production plant in Fort Wayne, Indiana. Opening in early 2025, the facility will create 100 jobs and redirect approximately 60,000 tons of food waste from 450 supermarkets annually.
March 2022
Farmer Focus Building New Packaging Facility
Producer of organic chicken products, Farmer Focus, opened a 78,000-square-foot packaging facility in Harrisonburg, Virginia, to meet growing customer demand. At the time of the announcement, the plant had created 87 jobs. It is hoped it will enable the company to double production to 650,000 birds per week by 2024.
October 2021
Tyson Foods Announces Poultry Plant Expansion in Mississippi
Tyson Foods reveals plans to expand its chicken factory in Vicksburg, Mississippi, with a $61 million investment. The move will create 50 jobs and is expected to help the company meet the demand for convenient, high-quality protein products and boost the long-term growth of its namesake poultry brand.
June 2021
Mondelez Buys Greek Snack Maker for $2 Billion
Mondelez International, a Chicago-based snack foods giant announces that it will acquire Chipita S.A, a Greece-based maker of croissants and baked snacks that caters primarily to the central and eastern European markets. The move will expand the company’s portfolio to include pastry products and significantly boosts its European presence.
May 2021
EatJust Raises $170 Million for Cultivated Meat Business
San Francisco-based food technology company Eat Just Inc. announces it has raised $170 million in a new round of funding that will enable the company to turn its GOOD Meat cultivated meat unit into its own subsidiary. The funding is hoped to bolster GOOD Meat’s production scale and speed up further research and development of cultivated meat.
April 2021
Tyson Foods Opens New Poultry Factory
For the first time in 25 years, Tyson Foods opens a new poultry factory. The company’s $425 million investment has resulted in the establishment of a new processing factory, feed mill, and chicken hatchery in Humboldt, Tennessee.
The processing plant, which will staff more than 1,500 employees by 2023, will make pre-packed trays of poultry products to be sold in grocery stores across the United States.
November 2020
McCormick to Open Giant Maryland Warehouse
McCormick & Company, the world’s largest spice maker, announces plans to develop a 1.8 million square foot distribution center in Sparrows Points, Maryland. This will be the company’s largest warehouse worldwide and will leverage advanced technology solutions to boost productivity and efficiency.
Image Credit: Juice Flair / Shutterstock.com
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