AGT offers look inside new pasta plant
Company innovates to meet consumer demand
Innovation has been the impetus behind AGT Foods’ new extrusion center for the production of gluten-free, pulse-based pasta products, according to the company’s CEO.
“What we have here is the intersection of true innovation in ingredients and manufacturing technologies that are producing taste and textures and affordability that the consumer is going to demand. That is why this facility is going to grow,” AGT Foods CEO Murad Al-Katib said at the center’s open house Monday in Minot.
Al-Katib was joined by chamber, city, state, federal and international officials to celebrate the opening of the AGT Foods Extrusion Center of Excellence in the former Food Services of America building in southeast Minot. Previously a grocery distribution center, the building earlier this year began manufacturing gluten-free pasta.
The new plant is the second AGT-owned pulse plant in Minot and the third in North Dakota, with another plant in Williston and an office in Bismarck. Headquartered in Regina, Saskatchewan, AGT has operated in North Dakota since 2007.
Al-Katib said the new extrusion plant has more than 9 million pounds of capacity for gluten-free pasta production, and the company plans to bring additional packaging online in coming months.
“We have the ability to expand with the addition of four additional lines to bring this facility to 40 million pounds of production for gluten-free pasta, and these volumes will make this facility the largest gluten-free production facility for pasta in the world. And again, that’s a fitting thing for a state that is one of the largest pulse producers on the globe,” he said.
The plant buys pulse crops produced on about a half a million acres in North Dakota and Montana and about 1.8 million acres in southern Saskatchewan, he said.
“We’ve created jobs and opportunities, with plans to add 20 new employees at this facility that’s already done, and we have an increase to about 30 employees in the coming months. That’s on top of the 140 employees we already employ in Williston and at the Minot milling plant,” he added.
In addition to its own VeggiPasta brand made from peas, the company expects to produce products for major companies. AGT Foods also plans to produce meatless products for plant-based burgers, hotdogs and other foods.
“It’s not about not consuming meat. It’s about making alternatives that are affordable for consumers, and we’re seeing more and more meat companies incorporating plant-based ingredients,” Al-Katib said.
Sen. John Hoeven, R-ND, who presented AGT with a flag flown over the U.S. Capitol, spoke about the benefits the company has brought to North Dakota’s economy.
“It makes such a difference for the farmers, not only because it gives additional crops they can grow, but because they get a better price,” he said. “You save that transportation cost that they would otherwise have to to get that product to market.”
Sen. Kevin Cramer, R-ND, commented on the organic growth of an industry as the result of farmers and processors taking a risk by investing in something new.
“That’s the recipe for success and economic development,” said Cramer, who encouraged more U.S.-Canadian collaboration in moving commodities back and forth across the border.
“We should have a U.S.-Canada food and energy strategy together,” he said. “This is as much a laboratory for what could be as it’s own success story.”
Evan Burt, trade commissioner with the Canadian consulate in Minneapolis, also spoke of the economic ties that transcend the border between the two countries. Investing in both sides of the border is AGT’s long-term strategy for success, and those types of investments drive markets for farmers and economic development, he said.
North Dakota Agriculture Commissioner Doug Goehring said AGT’s investment helps secure its own future because as opportunities for farmers are created, the more pulse crops will be produced.
Al-Katib noted AGT Foods has invested more than $100 million in the Minot area over the years. The multi-million dollar extrusion plant received $269,231 from Minot’s MAGIC Fund as the community’s portion of the interest buydown on a PACE loan through the Bank of North Dakota.
“We haven’t asked for a lot,” Al-Katib said. “We’ve become a part of the community, and I think we’ve contributed more than we’ve asked for. And that’s our philosophy and that’s the way we’re going to continue.”