Aviagen Breaks Ground on New Tennessee Feed Processing Facility — Part of $100 Million Investment for North America

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Expansion in Tennessee signals growth, success for Aviagen North America and the customers they serve.

Global poultry breeding company Aviagen® will break ground this month on a new state-of-the-art feed processing facility (feed mill) in Pikeville, Tenn. The new facility will supply the company’s growing number of internal flocks with high-quality, pathogen-free feed. The $35.3 million allocated to the feed mill is part of a larger $100 million investment for the company in the communities of Pikeville and Crossville in southeastern Tennessee.

State-of-the-art feed mill with optimal biosecurity, quality

With the capacity to produce 2,400 tons per week (125,000 tons annually), the feed
mill will supply more than 18 Aviagen pedigree and 46 Grandparent (GP) farms, as
well as additional future operations. It leverages the latest technology available to
achieve complete pathogen elimination and comprehensive biosecurity. With energyefficient equipment and lighting, it is also engineered for the smallest-possible
environmental footprint.

“Our foremost priority is the health and welfare of our birds, which begins with
biosecure, high-quality feed,” explained Richard Obermeyer, Director of Feed
Production. “The Pikeville facility joins our Sallisaw, Okla., and Athens, Ala., fleet of
high-capacity, state-of-the-art feed processing facilities to keep our birds nourished
with an adequate supply of nutritionally balanced feed.”

$100 million investment to meet rising need

Crossville and the surrounding area is currently home to an Aviagen veterinary
laboratory, hatchery, office, vehicle maintenance facility, and pedigree farms. The
new Pikeville feed processing facility is included in a broader expansion that will
double the company’s current investment in the Pikeville and Crossville area. (These
communities are ~26 miles/42 kilometers apart). In addition to the Pikeville feed mill,
the Pikeville/Crossville investment covers new GP production farms and the
expansion of a Pikeville hatchery. The farms will produce eggs for Aviagen
hatcheries, which will in turn fulfill a continually growing demand for Parent Stock
chicks among the company’s domestic and international customers.

The site for the new operations was chosen for its proximity to the company’s
existing production bases, as well as for its physical isolation, adding to the
extensive biosecurity measures. Slated for completion in 2021, the new complex will
eventually bring 260 new jobs to the area, including up to 36 positions at the feed
mill. Another benefit to Tennessee agriculture is that grain supplying the feed
processing facility will be purchased from local farmers; the company estimates the
need for a million to a million and a half bushels in the first year alone.

“Our mission is to help our producers around the world feed their growing
communities with a sustainable, affordable and readily available source of quality
protein. Toward this goal, we continually upgrade and expand our facilities to keep
up with an ever-increasing need,” commented Aviagen North America President
Marc de Beer. “We’re committed to the people of Tennessee, and are happy to
expand our footprint there. It is a state with an impressive workforce, and one that
understands agriculture – particularly primary breeding companies and the important
role we play in the food supply chain.”

Pikeville Mayor Philip Cagle extended a warm welcome to the new Aviagen teams.
“We’re proud that Aviagen chose this area, bringing us much-needed jobs and also
an opportunity for our local farmers to supply grain for the feed mill. Aviagen is a
great asset for our community, benefiting Pikeville and the entire Sequatchie Valley.”

“We’re grateful to Aviagen for selecting Bledsoe County as the location of this
important strategic investment, which will prosper citizens throughout the county. As
an agricultural community, we share Aviagen’s commitment to provide a valuable
food source for our local families and people around the world. We look forward to a
long and mutually beneficial relationship for many years to come,” added Gregg
Ridley, Bledsoe County Mayor.

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