GCEDC has landed its first business for the Genesee Valley Agri-Business Park in Batavia. It is a Bogata, Colombia-based dairy product company that will use the plant to expand its yogurt business into the United States.
According to South American news reports, Alpina Productos Alimenticios will invest $15 million in the project and will initially hire 50 people at the plant.
Established by two Swiss entrepreneurs in 1945, Alpina runs nine industrial facilities across Colombia, Venezuela and Ecuador, and has commercial presence in more than 12 countries.
The product line, which generates about $740 million in annual revenue, includes beverages, milk, baby food, desserts, cheeses, cream and butter, and fitness food products.
"The Alpina brand is a symbol of pride not only to Colombians but to the entire Andean region," Alpina President and CEO Julian Jaramillo (pictured) told La Republica. "We hope to build a new frontier for growth in the U.S. market, based on the properties of innovation, quality, nutrition and sustainability associated with our products and our presence in places where we already operate."
But it's not a 100-percent done deal, according to Genesee County Economic Development Center CEO Steve Hyde.
The company intends to purchase a 10-acre parcel with a phase I construction plan for a 28,000-square-foot yogurt manufacturing facility.
The company picked one of the newest parcels in the park, so there is still a little bit of work to be done to get it completely shovel ready, including extending one of the roadways.
The purchase is contingent on that work being completed on schedule, and if it is, Hyde said, construction on the plant should begin in August.
The 10-acre parcel will give the company room for expansion.
"They've got a real footprint for future growth," Hyde said.
According to the La Republica article, Alpina has achieved growth rates in Venezuela and Ecuador of 15 and 20 percent and his hoping for the same level of success in the U.S.
Jaramillo believes per capita consumption of yogurt in the U.S. is low, which he sees as an opportunity to capture new consumers.
Hyde said the company, which he described as really family oriented, has done a lot of market research and has determined the northeastern part of the U.S. has a fast-growing Hispanic population, so they were looking at five sites in New York and three in Pennsylvania.
Batavia having a nearly shovel ready park combined with the region's high number of quality dairy farms were attractive to Alpina.
"It kind of proves the thesis that you've got to have that shovel ready site that clusters industries or companies won't even come," Hyde said. "They won't take the risk. They've got to be able to build and go."
The project is part of a $50 million plan by Alpina to expand its business.
“We’ve been waiting for exactly the right moment to make a major push into the U.S. market, and today we found the right location to achieve our strategic goals,” said Alpina Foods, LLC, Managing Director Carlos Ramirez Zavarce.
Below is a video the company produced for YouTube that has received more than 500,000 views.
"Hyde said the company, which
"Hyde said the company, which he described as really family oriented, has done a lot of market research and has determined the northeast part of the U.S. has a fast growing Hispanic population, so they were looking at five sites in New York and three in Pennsylvania." What does that have to do with where yogurt is manufactured? Are they only selling in this area or are they implying that they will utilize the Hispanic work force in this area?
Clearly, they have experience
Clearly, they have experience marketing to a Hispanic population. It wouldn't make any sense (and be illegal to discriminate in hiring) to tie coming here to a Hispanic workforce. The more logical thing is that they see a growing market of Hispanic consumers in the northeast.
Just stick with the high
Just stick with the high number of quality local dairy farms then, let's promote our longstanding local resources first.
If a company does its own
If a company does its own research and goes -- we want a facility in the northeast because we think a group of consumers we know how to target represents a business opportunity for us -- why is that a problem?
As I understand it, Alpina did it's own research, hired a site selection company in PA, and that company identified eight potential locations in the northeast.
Then GCEDC along with the governor's office and other regional agencies presented what they believe are the benefits of the ag park. Alpina obviously liked what they heard, among the facts related to the dairy industry.
Given all that, why would the fact that the northeast have a growing Hispanic population even be an issue in this regard?
If Alpina didn't see a business opportunity in the northeast, whatever that opportunity, then they would never had learned about the dairy industry here.
(canceled by me)
(canceled by me)
"Given all that, why would
"Given all that, why would the fact that the northeast have a growing Hispanic population even be an issue in this regard?"
Bingo, I would rather the main draw to our area be it's quality dairy farms, capable labor force, and attractive commercial environment rather than the influx of an immigrant population. I say all this at the risk of sounding like Jack Davis, but I really am not. I just want to hear the first trumpet blown be for the attributes that have always made our area valuable.
This is good news for our
This is good news for our area. The GCEDC should get credit where credit is due for landing this growing ag business. Sounds like a perfect fit for our county.
I hate to break it to you
I hate to break it to you guys, but this area already has a major company that caters to the hispanic population that has been here for over 10 yrs right nearby.
Goya Foods in Angola has been around for a while now. Angola is just next door to us, and for hispannic worldwide is the #1 choice for spanish style foods. The company has been around for over 75 years and has a big reputation for quality foods, so much so that you will see their stuff in everything from mom and pop bodegas and resteraunts to major grocery store chains like Tops Wegmans, P&C, Giant, Price Chopper, etc.
Seems like this company would be a natural fit, especially as Jeff points out with our produce and dairy resources here locally. I just hope they will not be importing workers to fill those jobs they create.
It is important to give
It is important to give credit to the GCEDC when they get it right. Otherwise the swelling voice of Genesee County residents who are angry about the waste and mismanagement of our IDA loses it's resonance when there is an issue to be legitimately angry about.
Here is an example of the GCEDC (probably) doing their part to bring jobs to our county. They should be praised for it and, at the same time, they should be held accountable for their failures.
Chris, exellent point, it is
Chris, exellent point, it is good to see they actually can make an impact on job creation, and inticing industry to our area.
Hopefully, they can continue to make positive headlines and put the past behind them, time will tell.
One thing we've learned from
One thing we've learned from studying the GCEDC - they're great at marketing. What kind of incentive package has the GCEDC arranged for this company? I'm sure the 'shovel readiness' was a small part of the overall package that the GCEDC & State pitched to this company. It will be interesting to follow this story through and see how much taxpayer subsidized 'investment' it takes to get a project like this.
On it's face, this sounds
On it's face, this sounds like a perfect fit and a great opportunity for our community in terms of job creation, capital investment and future tax revenue. It is also in line with our agricultural identity and resources.
I agree with the above comments, that credit should be given to the GCEDC for their part in bringing this business to our County.
As someone that has been critical of the GCEDC, I would also acknowledge their efforts at improving communication of their activities through the issuance of significantly more press releases; even for activities that they are not statutorily required to do, such as benefit packages under the $100,000 mark. This is a step in the right direction.
While we want to remain optimistic about this deal, we can't overlook the fact that a significant tax-payer funded incentive package will be given to Alpina Foods to locate here.
According to areadevelopment.com
Alpina is eligible for Empire State Development Corporation Excelsior Jobs Program benefits and incentives from the Office of Community Renewal and the Department of Labor. National Grid and National Fuel will help fund infrastructure extensions to the new facility. And the Genesee County Economic Development Center (GCEDC) and town of Batavia will provide local incentives.
If we are going allow various agencies to give away the store, to get a store, I don't think it is too much to ask for increased transparency, accountability and an honest level of measurability in return to ensure that businesses that receive these benefits do in fact create real jobs and that our community realizes a real return on their investment.
While the public at large can be the harshest critics of the GCEDC, we can also be their most ardent supporters. We only ask that they prove that their efforts are working and that they view transparency and accountability as part of the solution and not the problem.
You have to love it. A
You have to love it. A company from South America is outsourcing jobs to our area, people will get work, and still some whine about it because a target population (Hispanic) that might buy their products lives around here and was one of the factors in picking Genesee County.