US: Diamond V starts $28m expansion project to add feed additive manufacturing space
The building of a second animal nutrition product manufacturing facility will be the third expansion at the corporate campus for the Iowa-based, animal nutrition and health company, said Jeff Cannon, Diamond V CEO.
It is part of a $28m capital investment, he added.
“We opened our South Plant 1 at our Cedar Rapids, Iowa corporate campus in 2009,” said Cannon. “We have expanded it twice already.”
“Continued growth in demand has brought that facility close to capacity,” he said. The construction of South Plant 2 is expected to meet that ongoing demand.
“[Our] sales have been growing at compounded growth rates in excess of 20% for the past five years,” Cannon told us.
The additional capacity will also support its growing global business, he said.
Diamond V has been seeing increased interest from countries in Latin American and Asia, as consumers in those regions have additional disposable income, he reported.
Demand is also coming from producers looking to reduce or eliminate the use of antibiotics in their animal production both to address changes in the way antibiotic use is regulated in the US and to meet consumer interest, said Cannon. “Major food brands are quizzing suppliers about their use of antibiotics and many are pledging to reduce or eliminate at least certain antibiotics from their supply chains and consumer products,” he added.
Expansion details
When complete, the new facility will add about 97,800 square feet or 9,806 square meters of space.
In addition to the manufacturing capabilities, the new facility will have additional storage and fermentation space along with the ability to dry, grind, package and transport products, he said. The expansion will also "result in the hiring of new skilled employees in manufacturing, research and development, marketing, accounting and information technology,” he added.
The new facility will also ensure Diamond V can continue to generate all its animal nutritional health products in Iowa, said Cannon.
“Iowa continues to be an ideal location for our continued expansion,” he said. “Since it is in the center of the world’s leading agricultural production, we have access to exceptional expertise and the highest quality raw materials required for our unique processes and products.”
Pre-harvest food safety tools
Diamond V's nutritional health line works to support animal health and productivity, said the CEO, adding that its Original XPC product is being patented for use in pre-harvest food safety programs.
“On the farm, conventional approaches like increased biosecurity, better hygiene, management and husbandry modifications as well as feed microbial security play critical roles in supporting pre-harvest food safety,” he said. “Going forward, however, it is going to take new tools to reduce the risk of pathogens in food processing and assure greater food safety.”
