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ISU report shows boom in Cedar Rapids' ag processing industries
 


CEDAR RAPIDS, Iowa — In cooperation with the city of Cedar Rapids, Iowa State University has released a report identifying emerging technologies that could be a starting point for increased economic activity, jobs and startup companies in the city’s agricultural and bioprocessing industries.

City and university officials released the report at a March 28 press conference before the annual Celebration of Agriculture dinner. “This report lays the groundwork for new areas to explore in the city’s bioprocessing industries,” said Wendy Wintersteen, ISU president and former dean of the College of Agriculture and Life Sciences.

“It’s a significant step in our collaboration, and we plan to explore these areas in-depth in the future as part of our university-city partnership.”

Funded by the ISU College of Agriculture and Life Sciences, Center for Crops Utilization Research, Bioeconomy Institute and Gary and Donna Hoover Endowment in Mechanical Engineering, the report is an outcome of a partnership begun in 2015 between ISU and Cedar Rapids to explore opportunities for expanding the success of the region’s industries.

“With Iowa State’s core strengths in agriculture, biosciences and engineering and Cedar Rapids’ powerhouse capabilities in processing, we believe that together we can significantly enhance economic opportunities that benefit the region and the entire state,” Wintersteen said.

Mayor Brad Hart said Cedar Rapids is already one of North America’s leading bioprocessing and food ingredient centers, with world-famous companies such as Quaker Oats (the world’s largest cereal production plant), General Mills, Cargill, Archer Daniels Midland (ADM) Corn Processing, ConAgra and Ingredion.

“It is vital for us to continue to explore new and innovative strategies to enhance economic development in this key target industry,” he said. “This important partnership with ISU shows our commitment to supporting existing local industries, as well as exploring future growth opportunities.”

Jasmine Almoayed, city economic development manager, explained the partnership is also a result of a series of discussions and visits that began in 2013. She said they were organized by city and economic development officials and leaders from ISU’s College of Agriculture and Life Sciences, the Bioeconomy Institute, Extension and Outreach and the Office of Economic Development and Industry Relations.

“There is a business advisory council consisting of plant managers and others in the large agricultural and bioindustries in Cedar Rapids that meets regularly as a group,” she noted. “We also meet with business leaders independently to discuss plant-specific issues.

“ISU and city leadership regularly meet to discuss goals and objectives, and will be tasked with continuing to develop strategies to meet those goals.”

The report assessed the impact of current bioprocessing activities in Cedar Rapids, including corn, oats and soybean processing; yeast and fermentation products manufacturing; and processed food manufacturing.

For Cedar Rapids, the report noted:

•Grain processing and bioproduct manufacturing facilities generate approximately $4.8 billion in revenue annually; the value of processing the raw materials of corn and oats exceeds $1.1 billion

•The bioprocessing industry employs about 5,000 workers, with a median income 38 percent higher than the citywide average

•For each job created in the food manufacturing and bioprocessing industries, four additional jobs are supported in the wider economy

•Between 2007-16, employment in food and bioprocessing industries increased at a rate more than double the rate in other sectors; the increase occurred during a period when total manufacturing employment in the region decreased

•In the past 10 years, the value of goods and services produced by the food and bioprocessing industries increased at a rate 1.5 times greater than general economic growth in Cedar Rapids

The report also detailed the major processing steps involved in each activity, described major products and byproducts produced and outlined water, energy use and waste generation from each processing area.

“We identified areas for potential growth in current processing and manufacturing practices through feedback we received from surveys of major plants and facilities in Cedar Rapids, plus a review of the latest scientific progress in processing,” said Kevin Keener, director of the Center for Crops Utilization Research, who co-authored the report with John Stanford, a research associate with the Bioeconomy Institute.

“We feel opportunities exist for spawning more economic activity for the Cedar Rapids region, especially in converting secondary products and waste streams into higher-value products. Those efforts will get at specific ways to develop, grow and improve current practices.”

Examples of new or emerging practices include applying a process called acid hydrolysis to distillers wet grains, a byproduct of ethanol production. Through this process, food grade xylose, a high-value sweetener, is produced.

Another glimpse into the future is an emerging process to capture more phytic acid from a dry-grind ethanol processing facility, Keener said. Phytic acid is highly valued as an antioxidant in the food industry, a compound to treat gastrointestinal disorders, an agent in anticorrosion products and a substance in the manufacturing of polymers.

“The phytic acid technology is in early stages of commercialization, and at retail prices ranging as high as $10,000 per ton, it supports our belief that further value and growth are possible for Cedar Rapids’ bioprocessing industries,” Keener said.

The report highlighted future conversions that could add value to oat hulls as a renewable chemical or solid fuel and technologies that may produce less trans fats in vegetable oils. The report is available online at www.ccur.iastate.edu/2018-cedar-rapids-food-bio-manufacturing-report.pdf

5/16/2018