Quality Roasting establishing new soybean processing plant in Michigan

Thursday, February 14, 2019

▪ MSF board supports processing facility in Tuscola County ▪ Project to generate $10 million, create eight jobs ▪ Quality Roasting’s new plant boosts economic impact of one of state’s largest ag exports, agribusiness industry

LANSING, Mich. – A new soybean processing facility in Tuscola County has received support today from the Michigan Strategic Fund, a project that is projected to generate a total capital investment of $10 million and create eight jobs.

“With Quality Roasting’s construction of its new processing facility in Reese, the state’s agriculture and food-processing industries will become more competitive, and as a result, livestock farmers and consumers will benefit,” said Jeff Mason, CEO of Michigan Economic Development Corporation, the state’s chief marketing and business attraction arm that administers programs and performs due diligence on behalf of the MSF. “We welcome Quality Roasting to Michigan and look forward to working with the company as they grow and add jobs here.”

Quality Roasting, LLC processes soybeans into soybean meal and oil primarily for the dairy industry. The company was established in 2018 as a joint venture between the parent, Quality Roasting Inc., and the DeLong Co. Inc. and will follow the business model of the parent, which heats and presses the soybeans to extract the crude oil. The remnant is used for feed for dairy cattle.

Quality Roasting is looking to expand its footprint and plans to construct a new soybean crush plant to process raw soybeans into soybean meal and crude oil in Reese (Tuscola County). As a result, the company has been awarded an $80,000 Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in New York and Wisconsin.

“Quality Roasting is excited to be part of the Michigan community. We appreciate all the support we have received from the state, county and township,” said Quality Roasting Director of Business Operations Erin Davis. “We look forward to bringing more value to Michigan soybean producers.”

Gilford Township has offered a 50 percent property tax abatement in support of the project. Individuals interested in careers with Quality Roasting should visit https://www.qualityroasting.com.

“The Tuscola County EDC is very excited that a Wisconsin-based company has chosen Tuscola County to grow their business in Michigan – in Tuscola County,” said Tuscola County EDC Director Steve Erickson. “Because of this decision to locate in Tuscola County, we will continue to be leaders statewide in the dairy and agricultural industries. We congratulate Quality Roasting for becoming a valued part of Tuscola County and the Thumb Area.”

In January, the Michigan Strategic Fund also approved a bond authorizing resolution for the issuance of $10 million in private activity bonds for Quality Roasting to acquire land, construct the facility and acquire and install machinery and equipment.

It is anticipated that Quality Roasting will use approximately 2.2 million bushels of soybeans, or about 2 percent of the state-wide annual soybean yield. With Quality Roasting’s new facility, soybean producers will see an increase in the availability of the processing of soybeans in Michigan.

Michigan ranks 15th in the country for soy production, and soybeans are the state’s fifth top agricultural exports with top trade partners including Canada, China, Mexico, Japan and Thailand.  In 2017, Michigan’s exports of soybeans totaled more than $158 million. Soybean farming in the state accounts for about $1.2 billion in economic activity, according to the Michigan Department of Agriculture and Rural Development (MDARD).

In July 2018, the Michigan Commission of Agriculture and Rural Development approved a $75,000 Food and Agriculture Investment Fund performance-based grant in support of the project.

“We are very proud to help make this development happen,” said MDARD Director Gary McDowell. “Not only will it mean more full-time jobs for the residents of Tuscola County, but it will also help keep Michigan dollars in Michigan and give a much-needed boost to the price of soybeans for Michigan farmers who grow them. I know our staff and our partners worked hard on this project, and it’s important to show the domestic and international business communities that Michigan grows food, and MDARD grows food businesses.”

The project also supports Michigan’s dairy industry because the end product will be used as feed for dairy cattle. In Michigan, there are 1,747 dairy farms, including 1,498 Grade A farms and 249 manufacturing grade farms. The average farm in Michigan has 176 cows and are 98-percent family owned. Michigan ranks fifth in the nation for total milk production, with dairy farmers contributing $15.7 billion to the state’s economy.

About Michigan Economic Development Corporation (MEDC)

The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.