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Feeding Growth

Food production is a major contributor to Iowa economy

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When you go to the grocery store, place an order at a restaurant or have a meal delivered to your home or office, there’s a good chance what you’re getting was made in Iowa or has ingredients that were produced in the state.

Iowa has 638 facilities that produce food for human consumption, from sauces, stocks and soups to salad dressings and condiments, just to name a few. That’s in addition to Iowa’s standing as one of the nation’s top agricultural states, either leading or near the top in production of corn, soybeans, pork and eggs.

According to data from the U.S. Bureau of Labor Statistics, food production — not including farming — employed 60,832 people in 2024, the latest year data was available. That gives the state the third-highest concentration of food manufacturing employees in the  U.S. 

The average annual wage of a food production employee in Iowa in 2024 was more than $69,000, BLS data shows, and food production contributed $9.3 billion to Iowa’s gross domestic product in 2024.

Mike O’Donnell, director of Iowa State University’s Center for Industrial Research and Service, said it’s not just large corporations contributing to the strength of Iowa’s food production sector.

“Most people think of food manufacturing as large corporate factories, which are absolutely a huge part of Iowa manufacturing,” he said. “What might surprise people is that we have more than 450 small food manufacturers in Iowa and they employ 41% of food manufacturing employees.”

O’Donnell said the sector continues to adapt to changes in technology.

“Food manufacturing continues to change – from new technologies in the plant that help manufacturers of all sizes improve to scientific breakthroughs that create new ingredients,” O’Donnell said.

He said the state’s “strong agricultural foundation has helped [Iowa] become a global food manufacturing powerhouse.” 

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O’Donnell said the state is virtually tied with Nebraska and Arkansas for the most food manufacturing jobs in the country per capita.

Polk County leads Iowa in the number of food production establishments with 77.

One of those, Mrs. Clark’s Foods, is expanding its facility in Ankeny to meet the growing demand for its products. The company makes mayonnaise, salad dressings, juices and sauces for various major food labels for distribution around the world. 

Mrs. Clark’s is expanding its facility at 700 and 740 SE Dalbey Drive, where it employs more than 130 people. The company is expanding by 90,000-100,000 square feet, and will create as many as 15 new positions.

Grant Hoppe, the company’s managing partner, said Ankeny is centrally located and is close to the agricultural sector that produces some of the primary ingredients used in the products Mrs. Clark’s makes.

“Iowa produces more eggs and soybean oil than any other area in the country, and eggs and soybeans are the two main ingredients when it comes to mayonnaise and salad dressings,” he said.

Hoppe said Mrs. Clark’s uses about 35,000 acres of soybeans that are converted into soybean oil and more than 1 million pounds of egg yolks each year in the production of its products.

“So with the two main components [of ingredients] made in Iowa and the state having such a strong labor market, those are contributing factors for why, for us, it’s worth the investment and to continue the investment in Ankeny,” he said.

According to data from the U.S. Department of Agriculture’s National Agricultural Statistics Service, Iowa produces more than 16 billion eggs a year, the most of any state. It also was a leader in soybean production, with an estimated 598 bushels of soybeans harvested in 2024, data showed.

Hoppe said the expansion project is expected to be completed in late 2026. The estimated cost of the project is $25 million.

Another company, New Horizon Cuisine, is also expanding in Ankeny.

New Horizon makes organic soups, broths and vegetable stocks for the food service industry. It is constructing a 30,000-square-foot building on a site it purchased at 7405 SE Northstar Drive near the intersection of Corporate Woods Drive and Southeast Four Mile Drive.

Their products are found in stores such as Walmart and Whole Foods, and the company sells to cruise lines and airlines, too. New Horizon is also exploring exporting its products and is working with partners to export its products to New Zealand and Australia, said Jake Gretz, New Horizon Cuisine’s general manager.

New Horizon makes concentrated meat and vegetable extracts, industrial bases and flavors from scratch for food manufacturers and food service professionals, including professional chefs in commercial kitchens. Most of its customers are from out of state.

The company currently operates out of a 15,000-square-foot building, of which only about 3,500 square feet is production space with one production line. The majority of the building, at 1430 SE Cortina Drive in Ankeny, is used for storage.

The project will allow the company to add two production lines and 11 employees over the next three years. It will also allow New Horizon Cuisine to have its own freezer, cooler and storage spaces it has had to rent from an adjacent business, which is also growing.

The company currently runs six days a week and once the expansion is complete, it could eventually expand to seven days a week with employment of up to 35 people, Gretz said.

The project is estimated at $10 million.

Derek Lord, economic development director for Ankeny,  said the expansion of New Horizon and Mrs. Clark’s are examples of the growing consumable food production industry in Ankeny.

“Consumable food production and distribution make up about 8% of the total jobs in Ankeny, so it’s a significant industry cluster,” he said. “It’s a growing segment of our economy and it’s also economically resilient in terms of the ups and downs of the overall, broader economy.”

Debi Durham, director of the Iowa Economic Development Authority and Iowa Finance Authority, said food production is “part of who we are” as a state.

“Our farmers grow the crops and raise the livestock, and our processors and manufacturers turn those ingredients into high-quality products that reach tables across the country and around the world,” she said. “That entire system — from the fields to the factory floor — supports good jobs, drives innovation and strengthens communities across our state.” 


Iowa food manufacturing by the numbers

638 manufacturing facilities 
60,832 jobs
$4.2 billion in wages paid 
Average annual salary: $69,028 
Third-highest concentration of food manufacturing employees of any state 
$9.3 billion of gross domestic product 

Source: U.S. Bureau of Labor Statistics for 2024

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Michael Crumb

Michael Crumb is a senior staff writer at Business Record. He covers real estate and development and transportation.

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