031231 Louisiana Works on Incentives For Chicken Plant

Rayville, LA - One of Louisiana's top economic development officers said he believes the state and federal government can put together an incentive package that would create 325 new jobs here in Richland Parish.

Steve Windham, deputy secretary of Louisiana's Department of Economic Development, was one of about 50 people who met Friday with the developer who wants to build a chicken processing plant in the Rayville Industrial Park.

"I believe all this is all doable," Windham said. "It's a matter of putting all the pieces of the puzzle together with all of the partners here today."

Dave Hollister of Brown Produce represents a co-op of southern egg producers, led by Cal-Maine Foods of Jackson, Texas, who want to build a plant that would process their "spent hens," those hens past their egg-producing peak.

Hollister said he was encouraged by what he heard during Friday's meeting from representatives of agencies ranging from the U.S. Department of Commerce to the Louisiana Commissioner of Agriculture's office.

"I'd say it's 75% that we'll be in Rayville," Hollister said. "This is definitely our preferred site."

Hollister said his plan is to present an incentive package to investors during a meeting on Jan. 19 in Jackson and have a final answer by Feb. 1.

He told those gathered Friday that the co-op is willing to invest $5 million up front for the $12 million project if state and federal funding sources can offset the balance through infrastructure and wastewater improvements.

"I'm not begging, but I am looking for some help," Hollister said.

Rayville Mayor Harry Lewis and economic development officer the Rev. James Smith, who recruited the project, said the jobs would breathe new life into the town and surrounding communities.

"It would raise the standard of living for our entire community," Lewis said.

Smith said the project "would change the way of life for a lot of people in this town. We want to make this happen. No, we've got to make this happen."

Hollister said minimum pay for the jobs would be $7.50 per hour with benefits that include health insurance. He projects a $5 million annual payroll.

Jerry Wall, director of the University of Louisiana's Center for Business and Economic Research, said a $5 million payroll from that type industry multiplies to $12 million in total economic activity. Wall also estimated that each job at the new plant would create another three jobs.

Hollister said the plant would process about 100,000 chickens a day from producers in Louisiana, Arkansas, Mississippi, Texas, Georgia, Alabama, Florida, Tennessee, Kentucky, New Mexico, Kansas and Colorado.

"Rayville is within 500 miles of all our producers," Hollister said. "This site fits us like a glove."

Spent laying chickens are very different from the fryers typically grown and processed by companies like Pilgrim Pride.

"Spent chickens aren't the chickens you eat at Popeye's," Hollister said. "They're much smaller because they're primary purpose is egg laying, not eating."

But there is a market for the spent chickens as both human and pet food, as well as chicken feed. Most of the leg quarters would be sent to Mexico, while the breast meat would be sent to Canada, the feet and wings sent to China and the feathers ground for chicken feed.

"We don't waste any part of the birds, and we want them to come to Rayville," Hollister said.

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