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The similarities are striking between the home of DG Foods and Bastrop, where the company announced plans Thursday to expand its operations.
When the company got started in 2004, chief financial officer Greg O’Quinn said they were looking for the same things that drew them to Bastrop: a large, empty building and an available workforce.
In 2004, O'Quinn and chief executive officer Duffy McKenzie began working with the Mississippi Development Authority (MDA) and Copiah County Economic Development District to start their poultry processing operations.
One year prior, voters in Copia County approved a tax proposal to fund the purchase of a 56,000-square foot manufacturing facility that had become vacant in the area 50 miles south of Jackson. Neil Honan, director of the Copiah County Economic Development District (CCEDD), said voters approved the proposal because they felt the facility could be used by suppliers for the Nissan plant just north of Jackson.
As it became apparent those suppliers would locate closer to the plant in Canton, Honan said his agency and the state began working on a package to present to DG Foods.
“Some of it was loans and some of it was outright grants,” Honan said. “We put together a lease for them on the building with payments that were lower initially and increase over the term of the lease.”
As the company began operations, Honan said the agencies required the company to have a minimum payroll of 200 employees. According to McKenzie, the company now has over 500 workers at the plant in Gallman, MS.
Two years ago, however, it looked like the company’s fortunes were anything but promising. DG Foods relied heavily on Pilgrim’s Pride for the poultry it processed for clients ranging from fast food outlets to high-end restaurants. When ConAgra decided to close its plant in Farmerville, the company was forced to layoff employees.
“They had depended heavily on Pilgrim’s for their product, and when that fell through, they were down to 20 employees. We felt we were going to lose them,” Honan said.
Gov. Bobby Jindal and Louisiana Economic Development put together a nearly $80 million package presented to California-based Foster Farms. When the company bought the plant, its 1,000 employees and poultry growers who supplied the product were back in business. And DG Foods was able to bring back its employees.
“The deal with Foster, from whom they started buying product, actually helped re-establish DG's business,” Honan said.
When the MDA and Honan's group put together the package to bring DG to the region, they were required to provide employment for 200 workers. Honan said the company currently employs around 450.
“We did a study to show the impact they've had on our community, and I'm not certain those figures are still accurate, but here's an idea of what they do,” Honan said. “They bring in 10,000 tractor trailer loads of processed chicken and create 350 million pounds of product. That's significant”
The similarities are striking between the home of DG Foods and Bastrop, where the company announced plans Thursday to expand its operations.
When the company got started in 2004, chief financial officer Greg O’Quinn said they were looking for the same things that drew them to Bastrop: a large, empty building and an available workforce.
In 2004, O'Quinn and chief executive officer Duffy McKenzie began working with the Mississippi Development Authority (MDA) and Copiah County Economic Development District to start their poultry processing operations.
One year prior, voters in Copia County approved a tax proposal to fund the purchase of a 56,000-square foot manufacturing facility that had become vacant in the area 50 miles south of Jackson. Neil Honan, director of the Copiah County Economic Development District (CCEDD), said voters approved the proposal because they felt the facility could be used by suppliers for the Nissan plant just north of Jackson.
As it became apparent those suppliers would locate closer to the plant in Canton, Honan said his agency and the state began working on a package to present to DG Foods.
“Some of it was loans and some of it was outright grants,” Honan said. “We put together a lease for them on the building with payments that were lower initially and increase over the term of the lease.”
As the company began operations, Honan said the agencies required the company to have a minimum payroll of 200 employees. According to McKenzie, the company now has over 500 workers at the plant in Gallman, MS.
Two years ago, however, it looked like the company’s fortunes were anything but promising. DG Foods relied heavily on Pilgrim’s Pride for the poultry it processed for clients ranging from fast food outlets to high-end restaurants. When ConAgra decided to close its plant in Farmerville, the company was forced to layoff employees.
“They had depended heavily on Pilgrim’s for their product, and when that fell through, they were down to 20 employees. We felt we were going to lose them,” Honan said.
Gov. Bobby Jindal and Louisiana Economic Development put together a nearly $80 million package presented to California-based Foster Farms. When the company bought the plant, its 1,000 employees and poultry growers who supplied the product were back in business. And DG Foods was able to bring back its employees.
“The deal with Foster, from whom they started buying product, actually helped re-establish DG's business,” Honan said.
When the MDA and Honan's group put together the package to bring DG to the region, they were required to provide employment for 200 workers. Honan said the company currently employs around 450.
“We did a study to show the impact they've had on our community, and I'm not certain those figures are still accurate, but here's an idea of what they do,” Honan said. “They bring in 10,000 tractor trailer loads of processed chicken and create 350 million pounds of product. That's significant”
