December 11, 2013

Shenandoah Processing, a newly formed, locally owned company located in Harrisonburg, Virginia, will invest more than US$2.2 million in reopening a former Pilgrim's poultry processing facility.

During the three-year project, Shenandoah Processing will invest over US$2.2 million in capital improvements and purchase an additional US$160 million of Virginia grown poultry from Virginia growers over the next three years.

The Shenandoah Processing facility will serve the growing market for organically raised and "all-natural" chicken. It will provide processing services for Shenandoah Valley Organics, a poultry growing operation. In addition, the facility will provide custom processing services to individual farmers and growers who wish to have poultry prepared for retail sale. The facility will offer five end products: whole birds, boneless breasts, leg quarters, paws and basic cut-up. The facility will go from processing approximately 20,000 birds a day in year one, to 30,000 birds a day in year two, to 50,000 birds a day in year three.

In the first three years, Shenandoah Valley Organics will work with poultry growers in the Central Shenandoah Valley to source their birds for Shenandoah Processing, targeting production of almost 11 million high-quality, organic chickens. In many instances, growers will be able to use existing poultry houses that are currently out of production in order to serve the new demand. By year three, Shenandoah Processing is expecting to require the full-time use of 106 poultry houses and provide opportunities for as many as 70 farmers.

"We believe there is a significant demand for certified organic/humanly raised chicken products. This awareness will only increase," said Corwin Heatwole, president of Shenandoah Processing. "We are excited to be bringing this project to the Valley and know it will help create a source of income for many families here in the Valley. One of the most important parts of this project is the life that will be brought back to many poultry houses that are currently out of production. We greatly appreciate the support that has been felt from locals, Harrisonburg, and the state."

Virginia Governor Bob McDonnell and other state officials on December 9 welcomed the announcement of the new poultry processing facility to the state.

The Virginia Department of Agriculture and Consumer Services worked with the city of Harrisonburg to help make the project a reality. McDonnell approved matching grant worth US$50,000 from the Governor's Agriculture and Forestry Industries Development Fund to assist Harrisonburg with the project. The project is receiving additional assistance through the Virginia Jobs Investment Programme.