Midwest Food Processors Association: Agri-processing initiative positive news for Wisconsin food processors

Contact: Nick George, President

608-255-9946

Nick.George@mwfpa.org

Brian Elliott

Dir. of Communications

608-255-9946

Brian.Elliott@mwfpa.org

Governor Doyle’s proposal to provide a tax credit to food processors is positive news for Wisconsin’s food manufacturers, according to Nick George, President of the Midwest Food Processors Association (MWFPA). The MWFPA represents over 100 processing facilities in Wisconsin, Illinois and Minnesota and approximately 250 industry suppliers.

Included as part of the Governor’s State of the State address last week, the proposal would be similar to investment tax credits available to the state’s dairy and meat processors. “Food processors are an integral component of the agri‐food value chain,” said George. “This initiative will help our members maintain their competitiveness by making much‐needed capital investments such as equipment upgrades and implementing energy conservation and efficiency efforts,” he added.

The Wisconsin food processing industry is one of the largest segments of the state’s manufacturing sector and worth about $50 billion. Processed foods are one of Wisconsin’s biggest manufactured export categories shipping $1.2 billion worth of products.

Wisconsin is a leader in processing dairy, meat, poultry, beverages, condiments, frozen foods, pet foods and vegetable and animal fats and oils.

The state perennially ranks among the top 5 processing states for both canned and frozen vegetable products and currently ranks 2nd nationally in production of vegetables (excluding tomatoes) for processing. Fruit and vegetable processing in the state account for $3.3 billion in industrial sales.

“The contribution of the sector to the economy can grow further and this proposal can assist in that effort. We trust the credit will encourage continued operation and expansion of the food processing industry in this state” said George.

It is expected that the credit will be introduced as part of a larger package of job growth initiatives proposed by the Governor. The measure will need to pass both houses of the State Legislature and then be approved by the Governor.