The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

The US state of Georgia has long been a leader in agriculture, but its food processing sector has become a major economic force. With over $11.8bn in annual revenue, the state's diverse and rapidly growing industry is supported by a robust infrastructure, skilled workforce and strategic investments. Bob Kosek, division director at the Georgia Department of Economic Development, explores how Georgia is turning its agricultural heritage into a global food processing powerhouse, fuelling both local and international markets.

Georgia, home to 11 million people, plays a pivotal role in feeding the United States and its global trading partners – and not just with its world-renowned peaches. The state's thriving food processing industry generates approximately $11.8 billion annually.

With nearly half of the top 100 US food processing companies operating within its borders, Georgia is home to global brands including Coca-Cola Company, Tyson Foods, Starbucks, Wrigley, Frito-Lay, Kraft and King’s Hawaiian. This success is rooted in Georgia's deep agricultural heritage, supported by robust infrastructure and a highly skilled workforce.

From poultry, which dominates on a world level at more than $1.6 billion in annual exports, to fresh produce and dairy, the more than 1,500 food processing manufacturers operating in the state can source a wide variety of Georgia-grown ingredients.

In the past 10 years alone, 293 food processing companies have opened or expanded operations in the state, investing more than $4.75 billion. Georgia’s food processing sector outpaces the rest of the United States by growth in gross state product, exports, and jobs.

The past year has seen major corporations, such as Yakult, Walmart, CJ Foodville USA and more, make major investments in the state to produce probiotic beverages, dairy products, baked goods and other food products. These expansions haven’t even focused exclusively in our major cities, with a recent announcement of an investment from FreshRealm pouring into rural Montezuma, creating 300 new jobs.

Rooted in agriculture

To create, maintain and grow a successful food processing sector, delivering a robust workforce and upskilling those already in the field is key. Food processing supports nearly half a million related jobs in Georgia, with 63,000 Georgians working in manufacturing alone.

Local companies fill their workforce with graduates from 22 technical college institutions that provide degrees remotely and across 88 campuses as well as nationally acclaimed universities such as the University of Georgia, Emory University and the Georgia Institute of Technology (Georgia Tech).

However, as manufacturing continues to advance, Georgia’s workforce training and development programs continue to evolve with the industry. In 2022, Georgia received a $65 million grant to support the Georgia Artificial Intelligence Manufacturing Technology Corridor, accelerating the development of AI technology, critical for the manufacturing of tomorrow, and workforce training.

In addition to supplying top-tier talent, we go further by helping companies upskill and retain their existing workforce, ensuring they remain competitive and adaptable in a rapidly changing industry. Georgia Quick Start, the nation’s top-ranking workforce training programme established in 1967, provides customised job training for eligible companies that are seeking to invest and create employment in the state.

An extension of the Technical College System of Georgia, Quick Start has delivered over 1 million well-trained, ready to start employees to businesses in Georgia. Quick Start has been involved in King’s Hawaiian workforce training since the company located to Oakwood, Ga., in 2010. Training includes food safety to Good Manufacturing Practices (GMP) and, most recently, automated control systems to streamline advanced manufacturing practices.

The Georgia Manufacturing Extension Partnership (GaMEP) at Georgia Tech provides business resources and workforce training courses for manufacturing leaders and team members. Courses range from food safety compliance to sustainability efforts to reduce costs. GaMEP also helped Sweet Grass Dairy in Thomasville create and implement a food safety plan that was more secure than government regulations and customer requirements, saved Southern Tea in Marietta approximately $30,000 each year on energy costs, and reduced assembly time and waste for Open Hand in Atlanta.

Building a competitive workforce for the future

Sweet Grass Dairy also received assistance from the Georgia Center of Innovation, which supports Georgia-based businesses in key industries with overcoming challenges to growth. The centre connected Sweet Grass Dairy with FoodPic, the food lab of the University of Georgia, starting a research collaboration that found the company’s products had a longer shelf-life than initially thought. This insight opened new doors for the company’s growth into East Coast and even potential international markets.

A large part of successes for local businesses also includes our streamlined distribution process. Georgia is home to the largest and fastest-growing single container terminal in America at the Port of Savannah. Freight transporters have access to 1,200 miles of interstate highways and an additional 20,000 miles of federal and state highways. Combine that with more than 65 cold chain storage facilities, over 180 million cubic square feet of space, and 85% of the world’s third-party logistics providers, and the state is primed for continued growth and success.

Hartsfield-Jackson Atlanta International Airport (ATL) has a total cargo warehouse space of 1.5 million square feet, and more than a dozen air cargo carriers move over 725,000 metric tons of cargo annually through the airport. As for freight transit, Appalachian Regional Port provides exclusive CSX rail service on a direct, 388-mile rail route between the Port of Savannah and companies in northwest Georgia, Alabama, Tennessee and Kentucky. Each round-trip container moved via the ARP offsets 710 truck miles on Georgia highways.

And with a prominent agriculture ecosystem, companies can save on supply chain costs by sourcing many key ingredients locally instead of importing from other regions. The state is seen as a leader in the production of peanuts, eggs and broilers, with blueberries rising as another prominent export. Continuing to invest in those agricultural roots has helped keep Georgia as an attractive option for restaurants and other manufacturers moving into the region, such as La Regina Atlantica and Walmart, which have established a robust network of local suppliers.

Georgia has long been known for its agricultural prowess, generating economic activity from products such as peanuts, peaches, and blueberries. But from this foundation, Georgia’s food processing sector has taken off in a major way. Other regions can conjure a similar transformation by creating environments where manufacturers can rely on historic strengths, take advantage of local talents and utilise effective business resources.

#Georgia #foodprocessing