14th Jan, 2006 - The Virginia Poultry Growers Cooperative is purchasing property north of Harrisonburg to build a grain storage facility and a future feed mill.

The Rockingham County Board of Supervisors voted to apply for state funding to help build access roads and a rail spur for the project.

The co-op will buy 84 acres next to the Norfolk Southern Railroad just north of Buttermilk Creek Road (Va. 765). President Cecil “Sonny” Meyerhoeffer said the co-op expects to close the sale within 90 days.

The new $5 million storage facility will help the co-op cut costs and be more competitive, he explained.

“The cost of feeding the birds is by far our highest cost,” Meyerhoeffer said. “Anything we can do to lower that cost will make us more competitive.”

The facility will be used to unload grain from railcars. The grain will then be transported by truck to the group’s existing feed mill in Broadway, co-op officials said.

In about five years, the poultry co-op plans to build a $10 million feed mill at the grain storage facility, which will replace the Broadway mill.

Grants Sought

The co-op is seeking state money for the project.

On Wednesday, the board of supervisors voted to apply for a grant through the Virginia Department of Transportation’s industrial access program to build roads into the facility, said County Administrator Joseph Paxton.

The county and the poultry co-op will apply for up to $300,000.

“I’m not sure they’ll get the full $300,000,” Paxton said. “But there’s a good chance they’ll get something.”

They also will apply for a matching grant of $150,000 through the Virginia Department of Rail and Public Transportation.

While no rezoning is required, the co-op will need a special use permit to operate the grain storage facility, which the supervisors will consider next month, Paxton said.

Chartered in May 2004, the poultry co-op processes 115,000 turkeys a week. It sells boneless turkey meats and bone-in turkey parts to more than 70 customers nationwide.

The co-op has 530 employees and 140 grower members.

Construction of the grain storage facility is expected to begin in the spring, with operations to begin early next year, Meyerhoeffer said.

“Initially, no new jobs will be created,” he said. “However, as the expansion and construction is completed, it is likely that some new positions will be created.”