The Yellow & Blue Podcast | Community, Careers and Cheese: Bel Brands and SDState | S2E5

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Bel Brands USA is making a major investment in Brookings, committing $200 million to expand its facility and double production of its iconic Babybel cheese. Production is increasing from about 1.5 million to 3 million cheeses per day — all made in Brookings, the only facility supplying Babybel cheese in the United States.

Jake Anderson, a 2004 South Dakota State University dairy manufacturing graduate and current project director at Bel Brands in Brookings, shares insight into the company’s expansion, its strong connection to SDState and the impact of its workforce — with about 90% of upper plant management made up of SDState alumni.

Transcript:

[Heidi] We talk about growth and the impact that it has on the dairy industry, but not only does it have an impact on that; it also impacts like the community and the state, you know, bringing in jobs, bringing in dollars. What kind of impact do you think that this expansion will have on the community and South Dakota?

[Jake] I don't know how long ago that I came across this information, but I'd say in the last four years, anyway, we'll say that it was estimated that one dairy cow had an economic impact of about $33,000 per year.
And so, when you do the math and you bring on 10,000 extra cows every day that's needed for our expansion, that's $330 million of annual economic impact to the state. So, it's not a small number.

[Heidi] Hello, Jackrabbits Nation.

My name is Heidi Bushong, and this is the Yellow and Blue Podcast. Today, we're talking about growth, not just for a global company, but for our campus, community and state.

Bel Brands USA is expanding its Brookings facility in a big way, investing $200 million to double production of its iconic Babybel cheese. Production will increase from about 1.6 million to 3 million cheeses per day, all made here in Brookings.

Joining us today is Jake Anderson, a 2004 dairy manufacturing graduate and now project director at Bel Brands in Brookings. Thanks for being here today, Jake.

[Jake] Yeah, you bet. Thanks for having me. I'm super excited for the opportunity.

[Heidi] So Jake, I know you graduated from SDSU in 2004 with dairy manufacturing. I know it probably hasn't been a linear line to Bel Brands, but tell me about your journey to dairy manufacturing and to Bel.

[Jake] Yeah, absolutely. Yeah, so I graduated from DeSmet High School, so shout out to the Bulldogs from DeSmet. And actually, I started out at SDSU as an engineering student in the electrical engineering department.

And about halfway through my sophomore year, I was looking for something a little different. And I actually had a friend in the dairy manufacturing program, and I really hadn't heard about it or heard anything about it. And so, he said, “Hey, why don't you come over here and check this out?” And I'm like, I'm not sure. And so, he finally talked me into it. And I went across campus and I spent an afternoon with, at the time, was the department head, Dr. Vikram Mistry. And I'll be honest — he talked to me for a couple hours, and he had me signed up to start classes that following semester before I left that afternoon.

[Heidi] Very persuasive.

[Jake] Yes, yes. And so, yeah, so the rest is kind of in history, but super happy that he talked me into that program. It is a little bit of a hidden gem here on campus, I would say. And just a great program, a ton of opportunities and great salaries for grads coming out of the program as well.

So, I graduated in 2004, like you had mentioned, and I went right out of school to Davisco Foods in Lake Norden, South Dakota. Since then, they were sold to Agropur. So now it's an Agropur plant up in Lake Norden, South Dakota. But I worked there for about six and a half years.

And then I came back to the university at the time when they were building the Davis Dairy Plant. And they were looking for a plant manager to start up the new plant and then shut down the old plant and kind of do some reconstruction there. And so, I was fortunate enough to make that move and came back.

And I was here for about two and a half years and really enjoyed that experience working with the students and just kind of helping them to know how the industry works, help them to learn the equipment in the new Davis Dairy Plant. And that was just a really rewarding time.

While I was there, obviously, Bel Brands made the announcement that they're coming to town.

[Heidi] Yeah.

[Jake] And in 2013, I made the move over to Bel Brands because I thought that would just be a fantastic opportunity to get in on the construction phase of a large plant like that and then the startup. And so, I was fortunate enough to be hired in as the production manager.

And so got in about halfway through construction phase. And so, kind of the first thing was really learning the equipment, learning the process. We installed the equipment as well as hired a team. Right now, we're up to 260 employees. And so, hire a team to learn the process and then start up the plant. And looking back, that's I would say that's been one of the highlights of my career so far is the accomplishment of starting up a plant like we did.

[Heidi] And now you're going to help it grow even more.

[Jake] Yes, yes. Now we're excited to talk about the expansion of our facility. So, we are going to be doubling the capacity of our plant here in Brookings. And actually, we started construction this week.

[Heidi] Holy cow.

[Jake] Yes.

[Heidi] That's so exciting.

[Jake] Yes, it is.

[Heidi] Major investment that Bel Brands is making to expand, essentially double the facility. Why is now the right time for this expansion?

[Jake] You know, the growth of the Babybel product. And so that's the only product we make in our Brookings plant is just the Babybel cheese. But the growth of that has been crazy the last five years. And actually, right now, we are importing quite a bit of Babybel cheese from our plants in Europe to meet the U.S. demand. And so that's obviously the main reason why we're looking at expanding the plant is so that we can produce locally in the U.S. for the U.S. market.

[Heidi] What do you feel is kind of driving that increased demand over the last five years for Babybels?

[Jake] Really, the main thing that Bel Brands really focuses on and they have for forever, we're now about 160-year-old family-owned company. And since the beginning, it's really been about portion-control snacks.

And that's really where the U.S. consumer has really expanded their, you know, their snacking abilities now or their snacking desire, I should say. And so, you know, we have a portion-control product, a piece of cheese with four to five grams of protein in every serving. And it's just a simple, easy snack to grab on the go. And it's just really been doing a great job in the last five to 10 years.

[Heidi] Has 140 milligrams of calcium, which is 10% of your daily value. Is it true that there's like a whole cup of milk in a Babybel?

[Jake] One Babybel cheese is about the equivalent of drinking a glass of milk a day.

[Heidi] That's crazy. Like when you're talking about like a little round wheel of cheese, just insane.

[Jake] Yes. And then, you know, just the enjoyment of opening the wax and peeling back the wax. And yeah, it's just a really fun product, fun experience from opening and consuming.

[Heidi] So you said ground has been broken, construction has been started. What is kind of the timeline for the expansion? What can the Brookings community and the state kind of expect along the way?

[Jake] Yeah. So, as I mentioned, we actually started construction this week, and our plan is to be in production with the new line in January of 2028. So just shy of two years, but there's a lot to do in two years.

[Heidi] Totally fair. Totally fair. Leading into my next question, how does that kind of change? Because you're still running. How does that change operations as you look to scale up?

[Jake] Yeah. So great question. So, you know, obviously we're expanding because we need more product in the U.S. And so, one of the key, super important pieces of this whole project is, we can't shut down our current plant any more than we absolutely have to.

And so, we do have planned shutdowns throughout the year. And those are extremely critical to do the tie ins and the connections of the two lines. But we are planning to stay in full production over the next two years of our existing line. But yeah, we're super excited about it. We've been talking about this project and this expansion for quite a few years. And to finally see it come to fruition starting this week has been super exciting, very rewarding.

[Heidi] As a person who's like been there from the beginning, you know, because the plant was finished in 2014. So, and now expansion will be done approximately 14, 13, 14 years later. What is it like seeing that kind of growth?

[Jake] You know, the growth itself has really, I know I talked about the last, you know, specifically five years has really boomed. But the growth has really been steadily increasing ever since 2014, when we opened the plant. And, you know, back in 2010, 2012, we were exactly where we are now. We were importing a lot of a lot of production from Europe, and the growth was really going crazy, and we couldn't keep up with the demand. And so, it made sense. We invested at the time to put the plant in Brookings. And ever since then, we've been steadily increasing, you know, to be at the point now where, you know, we're finally doing the expansion is very exciting.

We've been talking and discussing about this for quite a while. And, you know, there's been a lot of different things that, you know, have kind of either stopped a project in the past or had us escalate it like the last couple of years. 
We are a worldwide organization. We have about 30 plants across the globe. And so, there's a lot of things that have happened over the last 10 years that has had an impact on our organization one way or another.

You know, I can say we were really close to making this happen several years ago. And then the war in Ukraine happened. And, you know, that had a large impact on a piece, you know, on a large portion of our business over in Europe. And so, we kind of had, you know, some roadblocks that were put up for that. And but now we're finally making it happen. So, we're super excited for it.

[Heidi] This expansion, it's going to bring 160 jobs to the Brookings community. What type of roles would you be hiring for? Like, what does that look like?

[Jake] Yeah, so between 150 and 160 employees is what we're planning to bring on now. A lot of it will be the operator levels on the floor, actually running the equipment, making the cheese. We are looking to expand our maintenance department. I would say our maintenance is probably some of the harder ones to attract and fill. But we are going to expand our maintenance and as well as bring on some key supervisors and a few more managers onto the team as well.

So really across the board, we're looking to expand our teams in pretty much all of the positions we have.
[Heidi] When Bel first came to Brookings, it was pretty well known that they had picked Brookings because of the dairy manufacturing, dairy production programs and, you know, the proximity to the university hiring grads. How do you think SDSU prepares students to have a career at Bel Brands like you?

[Jake] Yeah, you know, I think one of the big things that they've got, well, they have several, but, you know, one of the main ones is they have a program that focuses from farm to fork. And so, you have a program that is all about the production side and on the farm and, you know, how do we get the most out of our dairy cattle as well as then you've got the manufacturing side as well.

How do you take that high-quality milk that is being produced and turn it into, you know, our wholesome and exciting dairy products. And so, seeing both sides of the industry while you're in, while you're attending SDSU is just super exciting. It's, you know, it's great to see the two sides.

And then also they have the pilot plant on campus. So the Davis Dairy Plant now, I know it was started in 2010, but that's such a huge tool for the students to utilize, you know, see how full-scale operations are ran a little bit on a smaller-scale size, but it's the same equipment, the same automation and programming that they're going to experience and see in the industry with a large operation like Bel Brands or Agropur or Valley Queen up in Milbank as well.

[Heidi] Getting that hands-on experience that they need to go straight into their careers.

[Jake] Yep, exactly.

[Heidi] What stands out about the SDSU grads that work for Bel? I'm sure there are a few of them.

[Jake] No, I would just say, you know, what's really rewarding when we do interviews with SDSU, and we've done manufacturing and production students, but we've also done interviews for human resource and for engineering team and some from the biology program for quality roles, and just seeing how prepared they are, how professional they are coming into their first job or for some of them, their first interview.

And, you know, I think SDSU does a great job of preparing students for the industry. I know I'm biased because I went through the dairy manufacturing program, but, you know, just the quality of graduates that come out of that program are just fantastic.

[Heidi] Not only does Bel Brands try to hire graduates from South Dakota, they also look to use milk, locally sourced milk from South Dakota as well. A lot of the milk right now comes 25 to 30 miles from the plant. What does this expansion mean for dairy in South Dakota and milk sourcing in general with this expansion?

[Jake] You know, back in 2010 and 2012, when Bel made the decision to come to Brookings, you know, the dairy program here at SDSU was certainly one of the reasons. But the main reason is the milk supply is here. There's plenty of milk. There's plenty of farmers here in the I-29 corridor. And that was one of the main reasons.

And what South Dakota has done to continue to grow the dairy industry, not only on the manufacturing side, but on the production side as well, has just been unbelievable. And, you know, what this expansion does is it's going to require another 10,000 head of dairy cows every day to supply the needed milk for the expansion.

And, you know, we have Bel Brands here. We have Agropur in Lake Norton. We have Milbank, Valley Queen Cheese up there. And everybody either is or has expanded in, you know, in the last few years.

And so just to be, you know, a part of the dairy industry and now that we're able to do our part and continue to expand and grow the production side of it is also very rewarding and exciting.

[Heidi] Yeah, good to see it grow from both sides, right?

[Jake] Absolutely. You can't have one without the other.

[Heidi] Very true. You can't make cheese without milk, right?

We talk about growth and the impact that it has on the dairy industry, but not only does it have an impact on that; it also impacts like the community and the state, you know, bringing in jobs, bringing in dollars. What kind of impact do you think that this expansion will have on the community and South Dakota?

[Jake] I don't know how long ago that I came across this information, but I'd say in the last four years, anyway, we'll say that it was estimated that one dairy cow had an economic impact of about $33,000 per year. And so, when you do the math and you bring on 10,000 extra cows every day that's needed for our expansion, that's $330 million of annual economic impact to the state. So, it's not a small number.

And then when you look at, we're bringing on 160 new employees, we're estimating that that will increase our payroll by about $12 million a year. And so that's going right into the community.

And so, yeah, we've been super blessed to be a part of the Brookings community. You know, I couldn't be more happy that Bel made the decision that they did to come to Brookings.

Obviously, it had a good impact on me, but it's fun to see our top management come to Brookings and visit. So, our top management is from France, and when they come and visit Brookings, their takeaway is just amazing at the community, the people we have here, the team that we have at Bel, they couldn't be more happy with the decision to come to Brookings.

[Heidi] We love to hear that. So encouraging.

You know, as we're approaching closer to graduation here, a lot of students are starting to think about their careers. As you reflect back as a person who graduated in 2004, did you expect to be able to have the kind of career you do while staying in South Dakota?

[Jake] To be honest, no. You know, looking back, I'm extremely happy how everything worked. However, I can say that I knew the opportunity was going to be there, and that was one of the main reasons why I made the decision with Dr. Mistry back in, what would that have been, 2002, to make the change. And, you know, so it doesn't surprise me that the opportunities were there.

I think my 2004 version of myself would have been surprised that, you know, that I was able to get to where I'm at and to be a part of the exciting highlights of the career that I've had, you know, from learning what I did at Davisco Foods back in the day, to starting up Davis Dairy Plant and that opportunity, and then to see how that translated and helped me in my first role with Bel to start up a full-size operation. From the ground up, I mean, it was a true, it was a cornfield when they started. And to see it, you know, come to what it is now is super exciting. And to be a part of the team that gets to do this again is super exciting. So, yes, I couldn't be more happy with the opportunities that the program has presented.

[Heidi] It all comes full circle.

[Jake] It does, it does.

[Heidi] Looking ahead, what are you looking forward to most about the future of the Brookings plant?

[Jake] This expansion has kind of been a long time coming. We've been talking about it for quite a few years, but I'm excited about the organization that I work for and their future ambitions. I know that this won't be the last expansion here in Brookings. I'm just super excited to focus on this one. But I know that Bel Brands has got just some great ambitions.

It's a great organization. And like I said earlier, we couldn't be happier to be here in Brookings and to be a part of SDSU and a part of the community of Brookings. And so, yes, I'm just super excited to see where this expansion is going to take us and what the next one looks like.

[Heidi] More Babybels.

[Jake] That's right. More Babybels.

[Heidi] Working on a college campus, I think students want to know what qualities do you look for when you're hiring someone to work at a plant? When you're, you know, looking to hire, whether it be dairy manufacturing, HR, business side, what are the qualities that you look for in an employee?

[Jake] What I tell students and the things that we look for is just really those individuals that want to work, want to have fun at work, you know, that are dedicated to doing a good job. But at the end of the day, they want to be somebody that comes to work and enjoys what they do.

We have a great team at Bel. It's a great organization to work for. We do work hard, but we have fun doing it as well.

[Heidi] You need to have fun at work.

[Jake] That's right. That's right. You spend way too much time there not to.

[Heidi] This truly is a project that has come full circle for you, from a student to working on campus, preparing students to working at Bel. Is there anything else that you want to add? Anything you want to make sure gets in this episode?

[Jake] No, I think we've had a great conversation. Thank you for the opportunity to do this.

I guess I would just close it out on the dairy manufacturing program again. I mentioned it at the beginning, but I truly think it's a hidden gem here on campus. Great opportunities, great salaries.

I came from a small hometown high school, small classes, and dairy manufacturing and dairy production and animal science. It's all just like it was in high school. Small classes, you're going to class with the same students throughout your college career, and it's just a fantastic program.

I certainly would recommend anybody to come to campus, talk with Londa over at the dairy science program and set up a visit. Don't be afraid to ask some questions and find out what dairy manufacturing, dairy production or food science is all about. It's some great programs.

[Heidi] Thank you, Jake, for sharing how Bel Brands USA is expanding in Brookings.

From more Babybel cheese production to new opportunities for SDSU graduates, this growth is making an impact close to home.

This is the Yellow and Blue Podcast. We'll see you next time.