Targeting Food and Life Science Industries

Iowa Area Development Group (IADG) and its partners have developed a strong program for
attracting and expanding firms in the cluster of industries called “food and life sciences.” The
cluster includes the businesses that add value to Iowa's agricultural products and that explore
and market products that relate to the health of humans and animals. It is not surprising that
Iowa would seek to attract and expand firms in this cluster. History has proven that Iowa has
been blessed with many competitive advantages in this area.

A recent SRI International study reported that Iowa presented many fundamental advantages to
firms in the food and life sciences cluster.

Why did SRI International research find Iowa such a remarkable location?

• Abundant raw materials. Iowa is widely-recognized as the food-producing capital of the
  world. Fertile farmland has attracted and nurtured a wide range of food-based industries.
• Supportive university research centers. Because of Iowa's strong agricultural history, it
  has developed and funded dedicated university research centers in agricultural sciences,
  medical and pharmaceutical studies and world-class programs in biotechnology research.
• Quality workforce. Iowa's k-12 educational system produces high graduation rates and
  employable workers.
• Existing critical mass. Iowa has a high concentration of ag-industry companies with skills
  and technology that create a critical mass. Iowa State University's Director of Industrial
  Relations has published a listing of 150 biotechnology firms "that call Iowa home."

What has been the experience of food and life science firms in Iowa?

• On a percentage basis, 20 industries in the food and life sciences cluster have at least
  twice as high a concentration of employment in Iowa as they have in the rest of the
  nation.
• Wet corn milling firms in Iowa produce much of the nation's corn sweetener. The share
  of Iowa's workforce employed in that industry is 21.5
• The value of the goods produced by firms in Iowa's food and life sciences industries grew
  by an inflation-adjusted 14 percent from 1986 to 1999 while employment at the firms
  grew by about seven percent.

What does Iowa's food and life sciences community look like?

• Members: the community consists of more than 1,300 firms employing more than 60,000
  workers with an annual payroll in excess of $2.0 billion.
• Size: each of the largest 11 firms employ 1,000 or more workers. Another 22 firms
  employ 500-999. More than 1,000 firms with fewer than 20 employees often serve as
  suppliers and sub-contractors.
• Wages: the average wage for employees in the food and life sciences cluster in 2000
  was $33,000. Tenure: 47 of the firms have been in business more than a century.
  Another 295 firms have been in business more than 50 years. Iowa firms stay in
  business and stay in Iowa.
• Sales: 9 of the firms had sales in excess of $500 million. Another 38 firms had sales in
  excess of $100 million.

Who are some of the Iowa businesses in this community?

How does Iowa's agricultural superiority support the food and life sciences cluster of
industries?

• Iowa farmland is among the richest in the world. As a result, the state has become a
  major food producing center.
• Iowa currently ranks first in the nation in corn, soybean, eggs and hog production; second
  in the nation in red meat production.
• Iowa has a well-organized network of agri-business support organizations to assist
  producer groups in adding greater value to Iowa's farm output.

Iowa Area Development Group (IADG) is especially proud of its value-added agriculture
partnership with the Iowa Farm Bureau Federation. Working together, the two organizations have
facilitated a wide range of projects aimed at strengthening producer income, diversifying
agricultural production and creating new opportunities and markets.

IADG enjoys an excellent working relationship with many agri-business support organizations.
We offer their web site links as an opportunity for you to become more familiar with these
organizations, their programs, staff and services.

How do Iowa's research centers support development in this cluster?

• Because of Iowa's strong agricultural history, it has developed and funded dedicated
  university research centers in agricultural sciences, medical and pharmaceutical studies
  and world-class programs in biotechnology research.
• The Iowa State University Plant Sciences Institute is a $425 million umbrella organization
  over a group of nine centers. The purpose of the program is to make plants more
  valuable for feeding the world's population and providing bio-based fuels.
• The University of Iowa maintains the Center for Biocatalysis, the Center for Advanced
  Drug Development, the transgenic animal facilities and ophthalmology research
  laboratories and the Technology Innovation Center.
• And the University of Northern Iowa operates the Ag-Based Industrial Lubricants
  Research Program.

What advantage does Iowa's productive workforce offer to these firms?

• Iowa's workers provide $5.62 in value-added labor per dollar of wages.
• Iowa consistently is in the top ranks in college entrance exam scores.
• Iowa students have an 84 percent high school graduation rate, placing Iowa among the
  top five states.
• Iowa has the lowest new employer unemployment insurance rate and the ninth lowest
  workers' compensation rate in the nation.
• Iowa has an outstanding network of community colleges and a variety of agribusiness
  and industry training programs.

What synergies exist for food and life science firms in Iowa?

• The Iowa Biotechnology Association is a networking opportunity for industry members.
  Its purpose is "to advance opportunities in Iowa for the improvement of the human
  environmental and economic well-being through the development and application of
  value-added technologies in the life sciences."
• The University of Iowa's Center for Biocatalysis & Bioprocessing is a leader in promoting
  technology transfer, research and development, and education and training in the state of
  Iowa.
• The Iowa Consortium is planning a pilot manufacturing facility in Ames, Iowa to process
  human drugs and foods from transgenic plants. A biologics manufacturing plant will
  produce plant-derived pharmaceuticals for clinical trials.