August 22, 2016

22/08/2016: Success for Anchor Ingredients as they acquire new processing plant

Whilst much of the local agriculture news of late in the US has been about the fallout from low corn and soybean prices, a Fargo-based start-up is proving to be an exception to the trend.

According to a recent article by Angie Wieck on INFORUM.comAnchor Ingredients, a supplier of raw ingredients such as flaxseed, barley, oats, peas and grains to human and pet food manufacturers, has experienced substantial growth since launching in March 2015.

anchoringredients.com

The first expansion came last fall when the company acquired Identity PreservedIngredients in Hillsboro, N.D. Co-founder Al Yablonski explained that buyers of the speciality crops they sell want to know where their ingredients come from and value transparency in the supply chain.

"We saw the opportunity to vertically integrate that supply chain and have our own processing capabilities while still being able to offer the benefits of distribution, quality control and customer service," he said.

The company partners with Arthur Companies, which purchases grains from farmers. Anchor then processes those ingredients in Hillsboro and handles distribution from its Fargo headquarters. Last month, Anchor Ingredients announced plans to purchase another facility in Buffalo, N.D. It has applied for tax increment financing from the city of West Fargo for a food manufacturing facility at 2521 3rd Ave. N., as well, according to legal notices published in The Forum. 

anchoringredients.com

Co-founder Seth Novak said it's premature to comment on the West Fargo project because a deal has not yet been finalised. 


Mr Yablonski added, however, that their ultimate goal is to own as many processing facilities as necessary to support the continued growth of the business.

Imports and exports
Mr Yablonski explained that the ingredients they sell fall into one of two categories. The first are commodities grown in North Dakota, Montana, South Dakota and Canada that are processed in Anchor facilities. The second are crops not grown in the US that are imported from Asia, South America and Europe.

"We scoured the globe, literally the globe, to procure ingredients for the same customer set. We don't manufacture all of those items. So, instead of us being able to keep our finger on the pulse of the manufacturing, that's where our quality control department comes in because they thoroughly vet those suppliers," he said.

Anchor Ingredients has also launched an export division. "We treat our end customer and our growers pretty much exactly the same," he said. "They're equally important to each other. Without one, we can't have the other. So, by having the export markets, it allows us to offer a better resource to our growers and give them better liquidity for their speciality crops." 


Read more HERE.
 

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