Mar-Jac Poultry’s selection of Spruce Pine for the location of its new $25 million feed mill didn’t result from a dart thrown at a map.
The new facility, which will create at least 30 new jobs and a transfer of 20 jobs from Mar-Jac’s Haleyville feed mill, resulted from the combined diligent efforts of the Franklin County Development Authority, the Franklin County Commission, Sen. Larry Stutts, Reps. Ken Johnson and Johnny Mack Morrow, Norfolk-Southern Rail, Alabama Power and Phil Campbell Water & Sewer Board officials, Mike Madden, Shannon Oliver, the Alabama Department of Commerce, Phil Campbell mayor Steve Bell and the town council, and the Alabama Department of Agriculture.
It was a true team effort that convinced officials with the Georgia-based company to invest in their future, and the future of Franklin County, by purchasing a 220-acre tract of land on Scharnagle Road, near Franklin 20 and Sheffield Avenue.
As industrial recruiters cast nets every day across Alabama, combined support from other agencies plays a crucial role in landing a big fish. And Mar-Jac is certainly described as a keeper.
“We found the ideal location in Spruce Pine, Alabama,” Pete Martin, Mar-Jac vice president of operations, said at last Friday’s announcement ceremony held at Northwest-Shoals Community College. “The Franklin County Development Authority was just outstanding in helping us locate this property. It feels good to be in Franklin County. It’s a great fit. The officials and people in this county welcomed us with open arms.”
The Franklin Free Press exclusively broke the news of Mar-Jac’s acquisition of the Spruce Pine location earlier this year, shortly after the tract was purchased from Oliver. While some naysayers scoff at a 20-job announcement, the ripple effects of the Spruce Pine feed mill will affect the local economy for decades, Martin explained.
“Right now, our total break-even cost is about $175 million. Forty percent of that is feed,” Martin said. “All those dollars will go through Spruce Pine. Our grower base cost right now is about $17 million. And we’ll be contracting with local farmers to construct at least 100 new pullet and breeder houses. With this feed mill as the hub, those houses will be built all around this area.
“The economic impact of all that can be multiplied by seven. So the impact of our Alabama operations you could say is around $1.2 billion.”
Martin said he’s fielded several inquiries from local banks asking about Mar-Jac’s expansion, and he anticipates farmers wanting poultry house loans will have local options. Mar-Jac will also invest $10 million in expansion of its Jasper processing plant, and an additional $7 million expansion of the company’s hatchery in Moulton will create an additional 25 more jobs to the area.
Mar-Jac’s feed mill in Haleyville, Martin explained, has served the company well, but the facility is outdated and need in of repair that would not be cost-justified. With adjoining rail access to the Norfolk-Southern line, the Spruce Pine property was perfectly suited to Mar-Jac’s needs, Martin said.
An expected 100 rail cars filled with grain and soy will deliver weekly to the feed mill. An on-site loop track will allow proper access during delivery.
Additionally, Mar-Jac’s Spruce Pine expansion will translate into more dollars for area farmers as the company will prioritize the purchase of corn and soy from local farmers, Martin said. Iowa-based Younglove Construction will handle general contractor duties for the new feed mill.
“They will be using lots of local labor, and we emphasize the importance of doing business with local folks. We want to be a good neighbor,” Martin said. “So far we’ve hired local contractors and surveyors, and we will definitely build a positive working relationship with this community.”
As with most Alabama industry announcements, Mar-Jac’s Spruce Pine venture came with economic incentives in the form of tax abatements. Last month, the Franklin County Commission approved a sales tax abatement for the purchase of materials for the new feed mill, along with a 10-year tax abatement. No state or local financial incentives will accompany the feed mill project.
Mays said the sales tax abatement will save Mar-Jac $456,420 in state and local taxes. Mar-Jac will pay $209,460 in education taxes, though, as those were not abated. Over a 10-year period, Mar-Jac will save approximately $90,000 per year on property tax, but will still pay $64,000 annually on education property taxes.
“The new investment and jobs created by Mar-Jac will be a major boost to our local economy,” Mays said. “Poultry and agriculture is the top industry in our region, and we are eager to see its continued growth here in Franklin County.”
Johnson, whose legislative district includes portions of Franklin County and three others, said Mar-Jac’s expansion will benefit the entire area.
“Agriculture is the largest industry in Alabama, and today’s announcement gives us a greater agricultural impact in our state and across the nation,” Johnson said. “I live one mile from the hatchery in Moulton, where Mar-Jac will also invest in expansion. We’re so glad to have you here. Franklin County, you received a vote of confidence from Mar-Jac today as a result of the hard work of many people.”
Construction at the Spruce Pine location is expected to begin in June. Martin said he hopes to have the feed mill fully operational by January of 2017.
