Chicory

CHICORY HARVEST!

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U.S. Chicory/Chicory USA

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Chicory USA Begins To Establish Roots

Star-Herald 5/2/04

Practicing what he preaches, Dave Hergert is investing in a second chicory processing facility that will create more jobs and bring added economic development to the Panhandle. County and city officials form Scottsbluff and Gering gathered last Wednesday morning at the future site of Chicory USA , where chicory will be roasted and ground for use in beverages, a new U.S. market for the product.

Chicory USA operations will be located next to the existing U.S. Chicory plant on 7th Street near 21st Avenue .

. University of Nebraska scientists continue to do research on chicory, especially on the inulin extraction process.

."This is the kind of thing the University should be doing for rural Nebraskans," Hergert said. "Their lack of interest in western Nebraska is one of the reasons I'm running for regent. After they closed the diagnostic labs here.I decided it was time to get involved. No one can remember when there was an agribusiness person on the board, so I think it's time to change that."

U.S. Chicory and Chicory USA will be the only chicory operations in the Western Hemisphere .

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Chicory USA Begins Its Expansion

Star-Herald 4/ 29/04

County and city officials from Scottsbluff and Gering gathered Wednesday morning at the future site of Chicory USA , a roasting facility that will be built next to the existing U.S. Chicory plant.

Dave Hergert and his son, Matt, handled the shovels as dirt was turned for the new $2.8 million plant on Seventh Street near 21st Avenue .

Dave Hergert, who used his own resources to build the $2 million U.S. Chicory facility in 2001, said the new industry in western Nebraska and eastern Wyoming has come this far because of scientists at the Panhandle Research & Extension Center . He encouraged more study on the alternative crop that could become a permanent benefit to the entire area.

"I'd like to see the chicory industry in rural Nebraska continue to grow," Hergert said. "It would bring extra jobs and more economic development to the Panhandle."

State and local economic development funding is being used to help build the new plant. Chicory USA , when it begins operation near the end of 2004, will have 20 full-time employees. During harvest U.S. Chicory employs about 20 people.

Chicory, harvested in September and October, is cleaned, sliced and dried into pieces that resemble dehydrated apple slices. The product is distributed to a major food company for use in pet food. When the new plant is operational, some of the dried chicory will be ground and roasted at the Chicory USA facility. It will be used in beverages in the U.S. , Canada and possibly other countries.

Hergert said harvest and the drying process could be accomplished before the new operation is functioning, because the dried product can be stored in the company's warehouse.

According to Hergert, University of Nebraska scientists continue to do research on chicory, especially on inulin extraction. Inulin is used in diet foods and is imported from Europe or found in imported food.

U.S. Chicory and Chicory USA are the only chicory operations in the western hemisphere.

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U.S. CHICORY OWNER OPTIMISTIC FOR VALLEY'S FUTURE, OPPORTUNIITES

Star Herald 3-6-04

About 20 years ago, after he'd moved to the North Platte Valley and begun to build a feedmill business, agri-business entrepreneur Dave Hergert was asked to serve on the Payroll Development Association, a precursor to today's economic development organizations. Its goal was to attract new businesses to the area.

"The successes that we had in that activity we could count on one hand," he said.

But the experience taught him a lesson about what matters in business success:

"The opportunities in economic development come from those who have a personal stake in the community, who do business here and like living in the community."

That description fits Hergert himself, who set down roots in the Valley in 1972. He was a traveling salesman from Wisconsin who was on the road constantly and rarely saw his young family. One of his customers encouraged him to buy a feedmill.

He arrived in the community with $10,000 to invest, and Hergert Milling was born. Over the years Hergert has built a business enterprise that includes a farm, feedlot, feed mill, alfalfa plant, elevator and, most recently, the only chicory processing plant in North America.

Except for the chicory plant, all of his businesses have a connection to the region's cattle industry. That's by design, enabling him to produce his own feed and control expenses. What began as a milling operation with two workers now employs 60.

"It's no secret that the agricultural economy has limited returns," he said. "You have to control your own destiny or add some value to what you produce."

The chicory operation came about through a combination of studies by the University of Nebraska Panhandle Research and Extension Center and an inquiry from Nestle-Purina, which was seeking domestic production of a key ingredient in its pet food. After looking at the possibilities, Hergert built a $3 million processing plant in Scottsbluff in 2001.

Hergert contracted with some local growers for the initial crop, which produces a root that is sliced and dried and shares some production characteristics with sugarbeets. The initial crop was deemed a success, and recently Hergert announced plans to add a $2 million roasting operation to the local plant, opening new markets for the crop.

"We're going to harvest probably 1,200 acres this year, which is about double what we had last year," he said. "We're looking at having up to 20 employees when we're up to full production."

The Panhandle Station's chicory research is one of the assets that contribute to building business success in the North Platte Valley, Hergert said. Another is the support of the local institutions.

"The attitude among the community leaders is better than it's been for many years in working with business and creating economic development," he said...

The investment in the North Platte Valley is worth it, he said, because of the quality of life and the people who live here.

"It's a wonderful place to raise a family," he said. "The quality of education is good. The work force is good. They're good people, very conscientious. You don't have a big problem with absenteeism and turnover. My office manager has been with me for 32 years."

Looking ahead, Hergert sees improved transportation, such as the Heartland Expressway, and the region's proximity to the growing Front Range of Colorado making contributions to the community's future growth and encouraging other local investors to build businesses in the region.

Hergert's son, Matthew, helps run the family business. Another son, Jon, an engineer in California, has traveled with Hergert to Europe and is helping with some of the design work on the new factory. Part of his own measure of success, Hergert says, is whether economic development creates opportunities for young people.

"I've never seen a U-Haul behind a hearse," he said. "We're only temporary managers of certain assets and facilities. We have an obligation to preserve and protect them and turn them over to the next generation in better shape than we found them."

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CHICORY PLANT COULD ADD 20 JOBS, DOUBLE AREA PRODUCTION

Star Herald 1/31/04

David Hergert does chicory math and two plus two keeps coming up five or six.

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PRESS RELEASE

January 30, 2004

11:59 a.m. Mountain Standard Time

In Scottsbluff, Nebraska

Chicory USA will begin construction soon on a $2 million manufacturing and roasting factory in Scottsbluff which will employ in excess of 20 skilled employees.

U.S. Chicory initiated the chicory industry in the United States with the construction of a factory in April 2001 and began processing in October of that year. That facility was the result of seven years of research and product development by University of Nebraska - Lincoln Panhandle Research and Extension Center scientists. The cooperation and assistance of these researchers have made this industry become a reality and offers a profitable alternative crop for Nebraska panhandle area farmers.

Ongoing University of Nebraska - Lincoln Food Processing Center research and development and Panhandle Station, Scottsbluff research continues with a Nebraska grant to Panhandle Chicory Growers Association and USDA financial assistance programs awarded to U.S. Chicory .

The City of Scottsbluff, Twin Cities Development Association and the Nebraska Department of Economic Development assistance has been invaluable in bringing this new industry to the panhandle area.

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U.S. CHICORY

Star Herald 3/20/02

The Panhandle Chicory Growers Association recently benefited from a "Specialty Crops Block Grant" from the Nebraska Department of Agriculture, in the amount of $70,000. Chicory is one of the newest Panhandle crops, and U.S. Chicory , owned by David Hergert, is the only chicory processing facility in North America.

The grant will allow the growers association to continue herbicide, pesticide, plant disease, and fertilizer research, as well as inulin extraction and marketing. Inulin is a chicory by-product used in low-calorie and diet foods.

"It's all going well," Hergert said of his venture. "Interest is growing among the farmers, and we'll have increased acres for the 2002 crop. There is some new interest and some who had chicory last year want more this year. We're looking at 1,300 to 1,400 acres."

The $2 million dollar facility opened in 2001, after Hergert signed a five-year contract with the Nestle' Company.

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