MONROE - While the recession took a toll on manufacturing and other industries, one part of the U.S. economy has remained a bright spot over the past few years: food production.
Across the nation, food producers are seeing enough growth that many are expanding and investing in new equipment.
For cheesemakers and cheese distributors, the slow economy has brought opportunities to expand while construction costs are low. Food makers and distributors have also benefitted from having products that consumers still buy in hard times and from ongoing efforts to open up new markets overseas.
Steve Stettler, Master Cheesemaker at Decatur Dairy in Brodhead, said cheese sales have remained strong during the tough economic times.
"More people are eating at home," he said. "They're using cheese for pizzas, lasagna and salads. They're buying cheese and looking for brand recognition, because they want quality cheese."
The result is growth - both in sales and in facilities. The expansions include cheese-making and processing operations in Green County.
Klondike Cheese Factory on Wisconsin 81 near Monroe is under excavation for an expansion for more dry storage and cooler storage.
"The biggest reason (for the expansion) is gaining business with new packaging and labels - or different shapes and sizes," said Luke Buholzer, vice-president of sales at Klondike.
Klondike has been picking up orders from grocery stores that are investing in private labels. Also cheese distributors are requesting private labels, said Buholzer.
"We have become a popular source," he added.
The additional labels help Klondike's sales, but not enough yet to increase production - so Klondike has enough production equipment for now.
If production needs to increase, the company would increase the number of employees and shifts before buying more equipment.
"Plans are in place if we need to expand," Buholzer said.
The last time Klondike had a major construction project was about 10 years ago. Klondike uses local banks for their loans.
Loans today are "not hard to come by," Buholzer said, especially if one has the equity to back it up.
Decatur Dairy began building a new addition in June and expects to have it completed by Jan. 15.
Co-op members thought the addition was the best way to market and sell their cheese.
Matt Henze, who works at the cheese factory, said the new addition includes a brine room to cure the cheese, a packaging room and an area for milk trucks to unload milk.
Stettler said the cheese factory is also making a new product, but wouldn't give details about what the product is.
W&W Dairy, in the north Monroe Business and Industrial Park, received approval of its expansion plans and design Dec. 1 from the City of Monroe Plan Commission.
The expansion will add office space, a changing room for employees and a break room, all of which eventually will be required by state regulations, according to Kevin Wyss, co-owner of W&W Dairy.
"It's to keep customers happy," he said.
Wyss said large food distributors and grocery stores, such as Schreiber Foods, Kroger and Costco, are requiring the changes.
With an investment in the small addition, W&W Dairy hopes more orders will increase production.
"We paid for it ourselves; it's not that big of an addition, Wyss said.
Cheese is recession food, said John Umhoefer, the executive director of the Wisconsin Cheese Makers Association. People are eating more frozen pizzas, he said, or adding string cheese to the lunches they're increasingly packing at home.
"Even we didn't necessarily see this coming," Umhoefer said, "where a recession is a net positive for cheese sales."
- Brian Gray and the Associated Press contributed to this story.
Across the nation, food producers are seeing enough growth that many are expanding and investing in new equipment.
For cheesemakers and cheese distributors, the slow economy has brought opportunities to expand while construction costs are low. Food makers and distributors have also benefitted from having products that consumers still buy in hard times and from ongoing efforts to open up new markets overseas.
Steve Stettler, Master Cheesemaker at Decatur Dairy in Brodhead, said cheese sales have remained strong during the tough economic times.
"More people are eating at home," he said. "They're using cheese for pizzas, lasagna and salads. They're buying cheese and looking for brand recognition, because they want quality cheese."
The result is growth - both in sales and in facilities. The expansions include cheese-making and processing operations in Green County.
Klondike Cheese Factory on Wisconsin 81 near Monroe is under excavation for an expansion for more dry storage and cooler storage.
"The biggest reason (for the expansion) is gaining business with new packaging and labels - or different shapes and sizes," said Luke Buholzer, vice-president of sales at Klondike.
Klondike has been picking up orders from grocery stores that are investing in private labels. Also cheese distributors are requesting private labels, said Buholzer.
"We have become a popular source," he added.
The additional labels help Klondike's sales, but not enough yet to increase production - so Klondike has enough production equipment for now.
If production needs to increase, the company would increase the number of employees and shifts before buying more equipment.
"Plans are in place if we need to expand," Buholzer said.
The last time Klondike had a major construction project was about 10 years ago. Klondike uses local banks for their loans.
Loans today are "not hard to come by," Buholzer said, especially if one has the equity to back it up.
Decatur Dairy began building a new addition in June and expects to have it completed by Jan. 15.
Co-op members thought the addition was the best way to market and sell their cheese.
Matt Henze, who works at the cheese factory, said the new addition includes a brine room to cure the cheese, a packaging room and an area for milk trucks to unload milk.
Stettler said the cheese factory is also making a new product, but wouldn't give details about what the product is.
W&W Dairy, in the north Monroe Business and Industrial Park, received approval of its expansion plans and design Dec. 1 from the City of Monroe Plan Commission.
The expansion will add office space, a changing room for employees and a break room, all of which eventually will be required by state regulations, according to Kevin Wyss, co-owner of W&W Dairy.
"It's to keep customers happy," he said.
Wyss said large food distributors and grocery stores, such as Schreiber Foods, Kroger and Costco, are requiring the changes.
With an investment in the small addition, W&W Dairy hopes more orders will increase production.
"We paid for it ourselves; it's not that big of an addition, Wyss said.
Cheese is recession food, said John Umhoefer, the executive director of the Wisconsin Cheese Makers Association. People are eating more frozen pizzas, he said, or adding string cheese to the lunches they're increasingly packing at home.
"Even we didn't necessarily see this coming," Umhoefer said, "where a recession is a net positive for cheese sales."
- Brian Gray and the Associated Press contributed to this story.