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Des Moines, Iowa
September 21, 2001
Iowa Agricultural Finance
Corporation (IAFC) announces the investment of $3.3 million by
its tecTERRA(c) Food Capital Fund in Wildwood Harvest, Inc., a
soy foods company created on August 24, 2001 by the merger of
Wildwood Natural Foods (Fairfax and Santa Cruz, CA) and Midwest
Harvest, Inc. (Grinnell, IA). Iowa Farm Bureau Federation will
make a concurrent investment of $700,000 in Wildwood Harvest.
According to Cybus Capital, the investment manager for the
tecTERRA Fund, proceeds of this investment will be used to build
and equip a new 20,000 sq. ft. soy food manufacturing facility
on a ten acre development site in Grinnell and to remodel and
equip another 20,000 sq. ft. food manufacturing facility in
Watsonville, CA, into which all California operations will be
consolidated. The new enterprise combines the operations of a
leading West Coast brand of organic tofu and other soy foods
with Midwest organic soybean supplies and a fast growing Midwest
tofu line, under the Midwest Harvest brand name. The new company
plans to add a complete array of dairy analogs to its product
line and is dedicating the Grinnell production to those new line
additions.
This transaction marks the tecTERRA Fund's first investment in a
rapidly growing functional foods sector -- the soy foods market.
Industry analysts suggest that annual soy food sales will exceed
$6 billion by 2005. Wildwood Harvest expects to more than triple
its annual soybean usage from the present 30,000 bushels. After
completion of the initial expansion plans, the company will
employ about 75 people in the California division and 25 people
in the Iowa division.
"We have created a business that will link the growers of highly
valued, organic soybeans directly to an exciting retail market,"
said Jeremiah Ridenour, CEO of Wildwood Harvest. Ridenour, who
along with Billy Bramblett was instrumental in the formation and
growth of Wildwood Natural Foods in Santa Cruz and Fairfax, CA,
and Tom Lacina, founder of Midwest Harvest, an Iowa farmer and
President of Wildwood Harvest, decided to pool their companies'
interests and merge in order to take advantage of the strengths
of each firm in capturing a share of the national market for
organic soy-based foods.
"We already have access to high quality genetics, the best soil
and climate for soy cultivation, central location and the space
to expand our food production here in Iowa. It just made sense
to work together to reach a larger market," commented Lacina.
Ridenour, Bramblett and Lacina noted an immediate match between
the companies through their shared mission to nourish human
health and well being through the promotion of dietary and
agricultural change. The merged company will continue the use of
the Wildwood Natural and Midwest Harvest trademarks.
Duane Acker, Chairman of the IAFC, noted that this first soy
foods investment by the tecTERRA Fund demonstrates Iowa's
leading position in the changing face of American agriculture.
"Iowa's annual soy harvest is second to none in quality and
volume. This new venture draws attention to Iowa's commitment to
remaining a leading agricultural state and creating the
opportunities for Iowa farmers to participate in fast growing
markets."
The IAFC is a farmer-owned investor in Iowa-based, value-added
agricultural businesses, especially ventures involving
agricultural producers in ownership or other benefits of growth.
IAFC was started with a $25 million loan from the state of Iowa
and created the tecTERRA Food Capital Fund to invest in
value-added processing and biotechnology businesses.
The tecTERRA Food Capital Fund is a unique blend of public and
private capital providing growth capital for value-added
agricultural processors and biotechnology. Its current portfolio
consists of Rudi's Bakery (Boulder, CO), now operating the first
commercial, organic bakery in North Liberty, IA; Sioux-Preme
Packing Co. (Sioux Center, IA), a specialty pork processor and
Stauffer Seeds (Omaha, NE), a
leading developer of transgenic corn hybrids for recombinant
protein production with plans to build a parent seed facility in
Iowa. tecTERRA is dedicated to investing in high-growth,
consumer driven, food processing and biotechnology businesses
for the benefit of both agricultural producers and equity
stakeholders.
The Iowa Farm Bureau Federation is an Iowa non-profit
corporation organized on March 15, 1921. It is a limited partner
of tecTERRA and has a strong history of providing capital to
support Iowa-based agricultural companies. The Iowa Farm Bureau
is associated with the American Farm Bureau Federation. The
primary goal of the American Farm Bureau Federation is to
improve net farm income and the quality of life of farmers,
ranchers and other rural residents through education and
representation with respect to public policy issues.
Cybus Capital, a leading Midwest merchant-banking firm with a
focus on the food chain, value-added agriculture and allied
industries, is the general manager of the tecTERRA Food Capital
Fund. Headquartered in Des Moines, Cybus maintains offices in
Denver, CO, Sacramento, CA and Portland, OR.
Company news release
N3821
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