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WisBusiness: Cranberry expansion could mean 1,115 state jobs
7/18/2008

By Brian E. Clark
WisBusiness.com

A coalition of cranberry producers and processors announced today a potential expansion of cranberry acreage in Wisconsin that could eventually bring 1,115 new jobs to the state and have an annual economic impact of $75 million.

The coalition is seeking fast-track approval from the state for permits that would allow growers to increase the number of acres of the crop grown here to 23,000 from the current 18,000.

“Growers don’t want to have to wait two years to get the permits,” argued Wisconsin Cranberry Growers Association head Tom Lochner, who said the drive to expand is driven by a growing national and international demand for the fruit. He said the cranberry industry now contributes $350 million to the state’s economy and supports around 7,200 jobs.

“Wisconsin is by far the best state to meet that need and reap the economic benefits. But we need to seize the opportunity before other states or world regions do,” explained Lochner, who said the expansion would have a small impact on the state’s wetlands.

Lochner said his group, as well as representatives of Ocean Spray Cranberries and Cliffstar, a juice producer, have met with Gov. Jim Doyle and the Department of Natural Resources to push their case.

Lee Sensenbrenner, a spokesman for Doyle, confirmed that the governor had met with cranberry growers.

“They are an important part of our agricultural economy,” Sensenbrenner said. “We want to maintain high environmental standards, but we can look at ways to streamline the administrative burden so they can make this investment here.”

Katie Nekola, who represents Clean Wisconsin, said her group would still want a “thorough environmental impact analysis to be done on any expansion plans to protect our valuable wetlands. And we would also want to preserve the public’s right to participate in the permitting process.”

Randy Papadellis, CEO of Ocean Spray Cranberries, said his company is bullish on Wisconsin because it has the infrastructure, the farmers, research support from UW-Madison and the land to expand.

“We’d just like to compress the permitting period,” added Papadellis. His company is has nearly completed a $50 million expansion of its Wisconsin Rapids Craisins plant, which is creating 90 new jobs. He said Ocean Spray, which has $1.8 billion in sales annually, has invested $200 million in the past five years and would invest tens of millions more in coming years.

Lochner said his group does not want to change any environmental rules protecting wetlands.

“We’d just like to speed things up and expedite this process,” he said. “Growers would like to get their plants in the ground next spring because it can take five years for them to produce.

“Cranberries are pretty capital-intensive up front and they can have a 10-year payback,” he said. With demand high, he said growers are now earning around $50 for a 100-pound barrel. Several years ago, a barrel was bringing only $12.

Lochner emphasized that his group is not asking for any state subsidies or grants.

“We don’t need a railroad spur or new road,” he said. “And at a time when the state is losing jobs and shutting down plants, we think this is a pretty positive economic development.”


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