Department of Economic Development Marketing Georgia to the World: the Agribusiness Edge

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Department of Economic DevelopmentMarketing
Georgia to the World the Agribusiness Edge
November, 2007
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The Agribusiness Edge

• Where we are
• The Georgia Landscape
• Where were going
• The Georgia Promise
• How we will get there
• The Georgia Dynamic
• How we measure success
• The Georgia Harvest

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The Georgia Landscape
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Agriculture The Georgia Landscape
Agriculture A rich heritage and Georgias
leading industry

• 1 in 6 Georgians works in agriculture, forestry
  or related field
• Leads all other states in production of
• Pecans, peanuts, eggs, rye
• 11 million acres of farmland
• 24 acres of commercial forestland
• Sunbelt Agricultural Exposition largest farm
  show in world
• with field demonstrations

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Agriculture The Georgia Landscape
Poultry Capital of the World

• Georgia broiler production exceeded by only 4
  countries
• International Poultry Exposition
• Hosted by Georgia since 1945
• 2007 20,000 attendees from 90 countries

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Agriculture The Georgia Landscape
Cotton Production

• Ranked 2nd in the U.S.
• 1st state to grow cotton for commercial use
• Cotton gin invented near Savannah

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Agriculture The Georgia Landscape
Other products associated with Georgia

• Peaches
• Vidalia onions
• Claxton fruitcakes (!)

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Agriculture The Georgia Landscape

• Agribusiness in Georgia
• Agribusiness is one of states strategic
  industries
• 56.7 billion industry
• 16 of gross state product
• 16 of state employment base
• Farm input and machinery sectors contribute
  approximately 4 billion per year
• Seeds, feeds, fertilizers, machinery, farm
  forest services

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Agriculture The Georgia Landscape

• Academia
• UGA one of three agricultural colleges
• Abraham Baldwin Agricultural College (ABAC)
• Fort Valley State
• Agricultural Center of Innovation
• NESPAL
• GTRI Agricultural Tech Research Program
• FoodPAC

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Agriculture The Georgia Landscape

• Current Assets
• State of the art technology
• Professional workforce
• Dedication to progressive investment

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Agriculture The Georgia Landscape

• Georgias Business Asset Portfolio
• Logistics
• Workforce
• Operating costs
• Business environment
• International business connections

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Agriculture The Georgia Landscape

• Logistics
• Hartsfield-Jackson Airport
• 725,000  tons each year
• Direct flights to 5 continents 150 U.S. cities
  
• Central location, U.S. East Coast Southeast
• More than 80 of U.S. market within a 2-hour
  flight
• Comprehensive transportation logistics network
• More than 80 of U.S. market within 2-day truck
  haul
• 5,000 miles of railroad largest network in
  Southeast
• Savannah Ports are fastest-growing in U.S.

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Agriculture The Georgia Landscape

• Workforce
• Young population and strong in-migration
• 4th fastest-growing state in U.S.
• More than 100,000 people move here each year
• Education
• HOPE scholarship
• Strong technical schools university system
• Quick Start and ICAPP assisted at 3,800 companies

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Agriculture The Georgia Landscape

• Operating Costs
• Longtime triple A credit rating highest rate
  possible
• Moderate costs for property, construction
  commercial leases
• Moderate costs of power, logistics general
  operating activities
• Wages social costs below national average
• Cost of living housing below national average
• Low tax rates

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Agriculture The Georgia Landscape

• Business Environment
• Stable tax policy 6 corporate income tax since
  1969
• Business incentives for new and existing
  companies
• Rankings
• 1 in workforce training (Expansion Management)
• 1 in fiscal policies (Laffer Report)
• 2 for business environment (Site Selection)
• 3 in entrepreneurial activity (Kauffman
  Foundation)
• 4th best state to do business in (CNBC)
• 12th in country for entrepreneurship climate
  (Small Business Survival Index)
• 15th best state for business (Forbes)

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Agriculture The Georgia Landscape

• International Business Connections
• 50 countries have consular, trade or bi-national
  chamber of commerce offices
• 11 international offices (when China office
  opens)
• Delta 317 destinations in 55 countries

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The Georgia Promise
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Agriculture The Georgia Promise

• Agribusiness as a Strategic Industry
• Commission for a New Georgia
• Goal Georgias Agribusiness economy will be
  ranked one of the top 3 in the U.S. by 2020
• Others Bioscience, Energy, Logistics, Advanced
  Manufacturing, Business Financial, Advanced
  Communications

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Agriculture The Georgia Promise

• Agribusiness Areas of Focus
• Poultry
• Vegetable Prod/Proc
• Natural/Organic
• Alt. Feedstocks
• Ag. Bioscience
• Forestry

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Agriculture The Georgia Promise

• Agribusiness Partners
• Agriculture Center of Innovation
• University System of Georgia
• Key Partners

• DCA
• USDA
• US Dept. of Energy
• Georgia Allies

• GFC
• DOA
• DOE
• DTAE

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The Georgia Dynamic
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Agriculture The Georgia Dynamic

• Georgias Bioenergy Initiative
• Strategic industries intersection of
• Agribusiness
• Bioscience
• Energy

• Model for other strategic industry plans

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Agriculture The Georgia Dynamic

• Types of Bioenergy in Georgia
• Biodiesel
• Ethanol from agricultural crops
• Cellulosic ethanol
• Wood pellets

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Agriculture The Georgia Dynamic

• Biodiesel
• Biodegradable fuel from natural renewable sources
• Feedstocks soybean oil, peanut oil, sunflower
  seed oil, canola oil, chicken fat waste grease
• Georgia Biodiesel factories

• Bulldog Biodiesel, Ellenwood
• Inland Oil, Bainbridge
• Alterra Biofuels, Gordon

• U.S. Biofuels, Rome
• Soymet, Rome
• Middle Georgia Biofuels, Dublin
• Sunshine Biofuels, Camilla

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Agriculture The Georgia Dynamic

• Ethanol from Agricultural Crops
• Clean-burning, high-octane fuel from renewable
  sources
• Feedstocks corn, sugar cane, sugar beets and
  sweet potatoes
• Ethanol factories
• Windgap Farms, Baconton
• U.S. Ethanol, Cordele
• First United Ethanol, Camilla

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Agriculture The Georgia Dynamic

• Cellulosic Ethanol
• Produced from Georgias 20 million tons of timber
  harvest byproducts
• Feedstocks switchgrass, wood, hay, plants and
  garbage
• Range Fuels in Soperton will be the nations
  first cellulosic ethanol plant broke ground
  last week.

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Agriculture The Georgia Dynamic

• Wood Pellets
• Feedstocks wood (sawdust, bark, logging debris)
• Ex Appling County Pellets (subsidiary of Fram
  Renewable Fuels)
• Plant established this year will market product
  to Europe
• Produced from timber harvest byproducts

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Agriculture The Georgia Dynamic

• The Bioenergy Corridor
• Georgia is ideally positioned as The Bioenergy
  Corridor of the U.S.
• We have the natural resources
• We have the academic resources
• We have the technology resources
• We have the commitment

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Agriculture The Georgia Dynamic

• The Bioenergy Corridor Natural Resources
• Georgia has the most privately-owned timberland
  in the U.S. (92 of 24.2 million acres)
• 11 million acres of farmland

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Agriculture The Georgia Dynamic

• The Bioenergy Corridor
• Academic Technology Resources
• University partnerships with UGAs College of
  Agricultural and Environmental Sciences
• Incubators to help start-up companies develop and
  commercialize products and address timely issues
  like drought

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Agriculture The Georgia Dynamic

• The Bioenergy Corridor Incubators
• Agriculture Center of Innovation in Tifton one of
  six solution centers in the state
  (www.agriculture.georgiainnovation.org)
• National Environmentally Sound Production
  Agriculture Laboratory (NESPAL)
• Ga. Tech Research Institute (GTRI) Agricultural
  Technology Research Program
• Food Processing Advisory Council (FoodPAC)
• Herty Advance Materials Development Center

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Agriculture The Georgia Dynamic

• The Bioenery Corridor Commitment
• Partnership among GDEcD, GEFA and GFC more to
  come
• Bioenergy an important part of state energy plan
• EPD expedites permitting process for biofuels
  facilities (90 days max)
• Legislation passed to reduce sales taxes on
  ethanol and biodiesel companies
• Grants available from Herty, other agencies
• State fleet includes more than 750
  alternatively-fueled vehicles

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Agriculture The Georgia Dynamic

• Georgia-Grown marketing program
• Increasing awareness and demand for locally-grown
  products
• Partnership between states Trade team and
  Department of Agriculture to promote
  Georgia-grown products within state, around
  country and throughout world

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Agriculture The Georgia Dynamic

• Georgia-Made, Georgia-Grown
• New agritourism initiative launched by Georgia
  Tourism Foundation states tourism division
• Encourages residents and visitors to purchase
  locally-grown, locally-produced items
• Includes farmers, craftspeople, food-packers
  processors, artists, etc.
• Goal is to sustain and nurture Georgias rural
  economies

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Agriculture The Georgia Dynamic

• Agritourism
• 1.7 billion industry in Georgia
• Helps family farms remain profitable
• Visitors seek authentic experiences to reconnect
  to their past
• Agriculture is the thread that ties Georgias
  heritage together

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Agriculture The Georgia Dynamic

• Farms engaging in agritourism report that it
  generates 41 of their revenue
• Great potential to expand across the state,
  maintaining Georgias agricultural heritage and
  providing rural economic development.
• Symposium today w/statewide partners to discuss
  ways to move forward

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Agriculture the Georgia Dynamic

• Mission to strategically deliver economic
  development throughout the state by
• Attracting new business investment
• Supporting the expansion of existing industry
  small businesses
• Locating new markets for Georgia products
• Attracting tourists from within and outside the
  state
• Promoting GA as a desirable location for
  entertainment businesses and projects
• Vision to be the pre-eminent economic
  development team in the world a unique public
  and private partnership working together for
  Georgia.

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Agriculture the Georgia Dynamic

• Critical Success Factors
• Working as a team
• Being accountable
• Building relationships
• Delivering measurable results
• Giving value to our customers
• Acting with integrity
• Being proactive and strategic

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Agriculture the Georgia Dynamic

• The world is flat and global outreach is a
  priority
• Georgia has 20th largest economy in world
• Last year, international companies accounted for
• 17 of project announcements
• 17 of total jobs announced
• 43 countries operate over 1,600
  internationally-owned facilities

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Agriculture the Georgia Dynamic

• Why is this important for Georgias agribusiness?
  
• Agriculture is one of Georgias largest exporters
  
• Companies who trade are located in 88 of
  Georgias counties
• International companies pay about 15 more than
  U.S. companies
• Foreign investment brings in new research,
  technology, and skills
• In 2003, affiliates of foreign companies spent
• 30 billion on research and development
• 109 billion on plants and equipment
• These advances are often adopted by locally-owned
  companies

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Agriculture the Georgia Dynamic

• Global Georgia Strategy
• Focus on Georgias strategic industries like
  agribusiness
• Raise Georgias visibility in key markets through
  highly targeted marketing initiatives
  (advertising PR events collateral, web, etc.)
• Build relationships with in-market key decision
  makers
• Repeated direct follow-up with such
  decision-makers
• Targeted marketing strategy for each countrys
  top 3 industries

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The Georgia Harvest
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The Georgia Harvest

• Recent Successes
• China
• Lehui (Kingwasong) June 06 200 jobs
• Food-processing plant in Newnan
• General Protecht May 07 240 jobs, 30 million
• Sany Sept. 07 200 jobs (potent. 600), 30
  million
• India
• Wipro Aug. 07 500 jobs

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The Georgia Harvest

• Recent Agriculture Successes

Roastwood Materials, Brooks County 52
jobs 2.5M Standard Functional Foods, Dodge
County 77 jobs n/a Country Boy Meat Stix, Hart
County 50 jobs 2M Boise Bldg Materials
Distribution, Barrow County 50 jobs 12M Premium
Waters, Inc., Coffee County 100 jobs 30M
American Foodservice, Thomas County 35 jobs 3M
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The Georgia Harvest

• Recent Successes
• Biofuels
• Georgias vast agricultural resources
• Sales tax exemption for biofuels
• Recent project locations
• Range Fuels (cellulosic ethanol)
• First United Ethanol (corn)
• C2 Biofuels (wood pulp)

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The Georgia Harvest

• Goal
• Georgias Agribusiness economy will be ranked
  one of the top 3 in the U.S. by 2020.

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The Georgia Harvest

• How GDEcD grows business in Georgia
• Building relationships throughout state the
  world
• Building partnerships in Georgias communities
  other entities
• Building competitive business assets and
  marketing strategies

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The Georgia Harvest

• How agribusiness community can work with GDEcD
• A successful team is a group of many hands but
  of one mind.
• Look for opportunities to partner
• Get to know what is important to the communities
  you work with
• Continue to act regionally and encourage others
  to do so

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The Georgia Harvest

• Dr. Fanning Stay alive as long as we live.
• Partnership engagement
• Leadership in industry
• Fulfillment of goals

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Georgia Department of Economic Development