Who We Are About Us Eggsbeingcandledforquality Impact, continued Wewillbepurchasingapproximatelyone bushelofcornperlayerhen,peryear, fromthelocalfarmingcommunity.We willalsobebuyingasignificantamount ofdistillersgrains,soybeanmealand otherfeedingredientsfromfarmersin thisregion.Morethan75%ofthecost ofaneggisderivedfromfeed,andthis ismoneythatwillstayinyour community. Ourlayersproduceanabundanceof qualityfertilizer.Ourchickenlitteris keptinenclosedmanurebarnsandis considerablydrierthanmanyother alternatives.Weplanonofferingour chickenlitterforsaletolocalfarmers. Inadditiontotheabovewewillbe buyingmillionsofdollarsofutilities, goodsandservicesfromtheregion.We haveatrackrecordofsupportingthe localcommunitythroughcharitable contributionsandinvolvement. Dr.PhilSonstegardsayshewas“allguts,no brains,andnomoney”whenhestartedoutin 1972withthepurchaseofaneggdryingplant inHowardLake,Minnesota.Dr.Phillivedina small,unheatedapartmentabovethe plant.Businesswastoughinthosedays,but thecoldMinnesotanightsdidn’tchillDr.Phil’s visionforwhatwouldbecometheSonstegard Foodsoftoday. Thecollectivegrewthroughouttheyearsand nowincludesoperationsinsixstates, deliveringqualityeggsandeggproductsinto domesticandinternationalmarkets.Our customersincludefoodproductdistributors andmanufacturers,governmentalagencies andretailers. TheSonstegardFoodsgroupisa3rd generationfamilyownedagricultureandegg businessthatremainscommittedtohigh standardsbyinvestingintechnology, processesandpeople. SONSTEGARD FOODS COMPANY Contact Us Phone:605.338.4642 Email:[email protected] Web:www.sonstegard.com SONSTEGARDFOODCOMPANY 1911W.57thStreetSte.102 SiouxFalls,SD57108 TheMostinEggsSince1972 Highlights of our project include: Concretetilt‐upbarnswithusefullives exceeding50years.Eachbarnwillhouse upto600,000layerhens.Weplanto build5barnsinthefirst5yearsand5 moreinthefollowing5years.Projected investment=$60million Apulletsite(verysimilarappearanceto alayerbarn)toraisebabychickstothe layingstage(approximately4months). Thepulletsitewillbebuiltatasecond site,thebirdswillbemovedtothemain complexwhentheyarereadytobegin theirproductivestage.Projected investment=$8million SunriseFarms–Harris,IA Planning to Grow WestartedbuildingSunriseFarmslocated nearHarris,IAin1995.Wecurrentlyhouse nearly6millionlayerhensandemploymore than200teammembersatthisfacility. AlthoughtheSunriseFarmscomplex remainsworld‐classaswecontinuetobuild outnewbarns,weareinterestedinstarting anewsitetoaccommodatethefuture growthoftheCompany. Wearecommittedtofindingtheright locationforournewchickenfarm.Oursite selectioncriteriaincludestheavailabilityof feed,water,electricity,naturalgas,good roads,qualityworkforceandapro‐ agriculturalcommunity. WefeelSouthDakotaisagoodfitforour newchickenfarm.OurCorporateofficehas beeninSiouxFallsfornearly30years.We enjoythefavorablebusinessclimate, Midwesternvaluesandworkethic,pro‐ agriculturalpoliticsandgreatcommunities toraisefamilies.Weevenlovetheweather! State‐of‐the‐artcentralplantfor processingandstoringouregg production.High‐techwashing,grading andbreakingequipmentwillbeinstalled topreparetheeggsforconsumption. Projectedinvestment=$10million. Full‐scalefeedmilltopreparecorn, soybeanmeal,distillersgrainandother feedingredientsforourflocks.Wewill alsoconstructgrainbinstorageforcorn whichistheprimaryfeedingredient. Projectedinvestment=$7million. TotalProjectedCapital Investment=$85Million Eggbreakingequipmentinaction Economic Impact Startingwageswillrangefrom$10per hourforentrylevelworkerstoskilled salarypositionsinexcessof$100,000per year.Allfull‐timepositionswillbe eligibleforanattractivebenefitoffering includinghealthinsurance,paidholidays andvacation.Wewillincreasetotal employeeheadcountasweexpandour capacity,beginningwithapproximately 50employeesandaconservative150 whenfullyconstructed.Grosswageand benefitcosttoourCompanywillaverage $50,000perassociate.Thesewillbe goodjobs. Weareembarkingononeofthemost capitalintensiveprojectsthisregionhas everhad.Thepropertytaxcontribution whichbasedontheassessorsgrowing valuationoftheprojectwillhavea significantandpositiveimpactonthe schoolsandtownshipsinyour community. How big of a chicken plant is Sonstegard Foods looking at building? How many chickens will your facility hold? Where exactly will this be? Our plans call for a state-of-the-art egg production operation that will grow over time to provide housing for a maximum of 6 million layer hens. We will use the highest quality construction materials, methods, technology and environmental design to build the complex. While these things certainly increase our capital investment in the project, we feel it is of utmost important to do it right for the sake of our birds, our employees and the community we operate in. We are providing a preliminary aerial photo of the proposed location and layout. Why did you chose Turner County? Our site selection criteria includes the availability of feed, water, electricity, natural gas, access to good roads, quality workforce and a pro-agricultural community. We’ve been looking in a number of States for quite a while now. Throughout this process we’ve maintained an attraction to South Dakota because, frankly, it’s been our home base for decades and for good reason. Many parts of South Dakota are just not suitable for a project like this. For example, we need to be relatively close to Interstate Highways to transport our product to markets across the county; that puts us near I-90 or I-29. We need to be where we can economically procure feed for our birds; that puts us towards the Eastern part of the State. We must have the availability of good employees; that puts us closer to where the people live. Turner County has always been a supporter of the South Dakota’s agricultural industry, and is without a doubt a pro-farming community. The area is served by some very good utility systems and has essentially met our every criteria. We chose this particular location in Turner County because we feel it is the best option to expand our operations. Who will manage this plant and where will they live? How many employees will you have? We plan on hiring as soon as we gain the necessary permits. Management and supervisors are expected to live close to our facility. We are optimistic that we will find a strong and interested base of candidates already living in the Turner County area, both in management and labor positions. We are looking to hire somewhere in the neighborhood of 20-30 employees in the first year and growing to approximately 150 after 10 years. We are focused on a slightly more technical/computerized setup than traditional chicken farms. All will be good jobs with competitive pay and benefits. We think we will be successful in attracting folks traveling to Sioux Falls from the Turner County area to stay at home and become part of our team. We will be stimulating economic development and job growth in Turner County. What about people's concerns for smells and traffic? Can you address this issue? We are an agricultural company and anyone that lives around or works in this industry understands the potential for occasional odor. What we can say is that we’ve gone to great lengths to design the facility and minimize/control odor causes. For instance, we are building enclosed manure barns to limit exposure to the elements, which leads to drier manure and less odor and contact with winds. We’ll also set numerous baited traps throughout the complex to mitigate the fly population. Our plans call for a significant amount of trees to be planted as shelter belts around the complex, this helps contain the fly population along with adding to the aesthetic value to the facility. A concern that has been brought to us is our impact on the roads. The reality is that we do recognize that some access improvement will be needed to accommodate the traffic in and out of our facility. We are working closely with the SD Department of Transportation and the Governor’s Office of Economic Development to come up with a plan. We do not intend for any financial burden for road improvements to be absorbed by the County or Townships. We’d also like to note that substantially all of the truck traffic that will be accessing our facility are already on the roads in Turner County. We want to buy local corn and feed, those trucks are simply going to have the option of stopping at our facility versus the ethanol plant, the elevator, and the like. The crop farmers in the area have always had manure fertilizer delivered to their fields, it may not be coming from the same place as it was in the past but really unlikely to have a significant contribution to extra trucks on the road. So, the reality is that additional trucks on the road as a consequence of our operation are the eggs and egg products coming out of our facility. These are relatively “light” loads and we’re probably looking at about 10 trucks per day at some point down the road. What would you like to say to the people, who after knowing more about this may still be opposed to the plant? Again, we’re a 3rd generation South Dakota family owned and operated egg business with locations in 5 states. We have found little negative feedback from the other five communities that our operations are located in, and we encourage anyone questioning our operations to visit with the residents in those communities. We’re going to be bringing a state-of-the-art facility into the community, as well as plentiful jobs. Turner County has a long history of supporting family ag-related businesses, and that’s what we’re about as well. We’re doing everything we can to cut down on the disruption of the way of life in the community, and ultimately, we hope to improve upon that way of life.
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