[00:00:06.720] I'm Bill Roberts, [audio skip] Science Department in a dilemma. [00:00:10.160] Our per capita income is just above fortieth in the nation. [00:00:14.300] There's a scarcity of jobs [00:00:15.800] and opportunities, both on the farms and in the cities. [00:00:19.600] Our best young people are leaving the state by the thousands. [00:00:22.960] This is a gloomy picture, [00:00:25.400] but there is something that we can do about it. [00:00:28.280] We're primarily an agricultural state. [00:00:31.440] Our basic resources are land and people, and we can build on this great heritage. [00:00:37.071] [music] [00:01:04.000] Winds of change are sweeping across our landscape [00:01:07.640] turning rural crossroads into towns, towns into cities, cities into urban centers. [00:01:14.360] And to feed the shifting and rising population [00:01:17.680] our farmlands [audio skip] transforming, our industries widening their enterprise. [00:01:22.800] Tobacco and cotton, [00:01:24.000] though still profitable crops, [00:01:25.800] have lost their monopoly over our best soils in the face of a new agricultural opportunity— [00:01:31.640] the production and processing of food. [00:01:35.200] It is said that North Carolina will become a horn of plenty for the east, [00:01:39.160] and with good cause. [00:01:41.080] In her fertile soils, [00:01:43.160] vegetable crops luxuriate twice over through a [00:01:45.520] a two hundred eighty day coastal plain season. [00:01:49.080] Fruits are mellowed in a rare Appalachian climate. [00:01:53.160] Fifty inches of rainfall annually join her [00:01:55.440] many rivers spilling westward toward the Mississippi, [00:01:58.560] eastward into the vast coast land of Atlantic fishing waters. [00:02:03.440] Livestock and poultry are now an industry [00:02:05.880] nourished by a benevolent climate and scientific research. [00:02:10.600] Already, this new wealth of the soil [00:02:12.840] and sea is being tapped by food processing plants [00:02:16.760] where it is preserved, packaged and sped over some of the nation's finest roadways to the hungry public, [00:02:23.320] including those at this restaurant table. [00:02:27.040] A meal in fifteen minutes. [00:02:29.960] Fish from the Chesapeake Bay, frozen just like the greens from New Jersey. [00:02:36.320] Potatoes dehydrated from Idaho. [00:02:39.960] A salad made of lettuce from California, [00:02:42.600] savored with a dressing ready made in Illinois. [00:02:47.240] For dessert, cherries shipped and frozen from Michigan. [00:02:51.320] These are processed foods, a meal almost cooked before it's purchased. [00:02:57.200] We could not provide this meal away from home, [00:02:59.680] this variety of foods, if it weren't for the food processing. [00:03:04.800] Well why not, [?]? [00:03:06.360] Well, Bill, back in the old days when I [00:03:08.600] first started in this business, you used to have to keep the chickens in the basement. [00:03:13.440] You'd have to go down, kill those chickens, pick them, cut them up. [00:03:17.320] You used to have half cattle coming through your back door. [00:03:20.480] Had to have a fancy meat cutter to break down that [?] of cattle to get it [00:03:25.280] down in the sections of parts of the meat that you wanted to use. [00:03:30.120] Then it would be very difficult to get [00:03:32.800] each size of a portion, just cut into the exact size you wanted. [00:03:37.400] And also you had this job of peeling potatoes. [00:03:40.400] You had to do a lot of potato peeling, [00:03:42.800] had to do a lot of cutting, whereas today all of that type food comes in ready to go [00:03:48.720] to the oven, or to the frying pan. [00:03:50.880] And the uniformity means so much. [00:03:53.600] You got four people sitting at a table like this. [00:03:58.920] You can be sure that four people are going to get the exact same [00:03:59.480] quality and the same portion. [00:04:02.360] We feed three thousand people a day, a million meals a year. [00:04:06.880] So many people eating away from home these days, [00:04:08.880] you might call this mass feeding here, institutional feeding. [00:04:14.000] And just like there are lines to the school, the government, the hospitals, [00:04:18.240] we had to be pretty demanding [00:04:19.760] when it comes to food, we buy— quality, standards, and uniformity. [00:04:27.440] If the hungry American public likes it's meals in a hurry at the restaurant [00:04:31.880] it also likes home meals without fuss and bother. [00:04:36.920] To get semi-prepared foods [00:04:38.160] the housewife turns to one of the biggest food buyers of all—the chain supermarket. [00:04:43.680] The story of the supermarket is really evidence of a food revolution in America, [00:04:49.280] convenience and time saving. [00:04:51.880] The customers are looking for foods that are convenient. [00:04:56.000] They no longer look for the items that you have to soak, stir, and mix. [00:05:00.640] They look for items now that you heat, serve, and eat. [00:05:05.200] To whether this food revolution is caused by new marketing techniques or [00:05:09.880] by the increased tempo of people on the move is hard for me to say, [00:05:14.000] but one thing for sure, [00:05:16.560] we in the supermarkets are going to have to please the housewife. [00:05:20.840] She will always be the boss. [00:05:23.400] Most housewives I know [00:05:25.000] are much to busy to spend time in the kitchen and even spend time shopping for that matter. [00:05:30.240] Thank heavens [00:05:31.760] they're able to get so many foods at the grocery store [00:05:37.160] that are already half prepared, saving time. [00:05:37.640] Think of how long it would take to shuck all that corn. [00:05:43.680] I don't think it's necessary really today to shop [00:05:44.160] but once a week if you're smart and if you have a freezer. [00:05:47.840] Well I know what some here are thinking, the old fashion taste of old fashioned cooking, [00:05:52.720] back before there was mention of food processing. [00:05:56.280] But before some of you make the reckless accusation that foods don't taste like they used to [00:06:01.200] beware of our [?] housewife. [00:06:04.320] I think one of the most ridiculous charges in the world is that [00:06:07.560] you can't be a good cook and use processed food. [00:06:11.120] I buy as many foods that will save me time as possible [00:06:14.520] to save time to devote to a family of four children and a husband. [00:06:19.160] And I think, really, that the art of cooking is in the proper selection of food [00:06:25.040] and in seasoning. [00:06:28.160] That's what make a satisfied family. [00:06:30.400] One of the big problems [00:06:32.240] is the distance that we have to transport some of these convenient foods. [00:06:38.920] As an example, we have frozen foods coming [00:06:41.920] from California, up in New Jersey, and down in [00:06:46.360] Georgia. [00:06:49.080] We feel that a great many of these items [00:06:51.680] could be grown and processed here in North Carolina, [00:06:55.640] and it would be a tremendous saving to the consumer in freight rate alone. [00:07:00.480] We are very North Carolina conscious, [00:07:02.360] let me show you. [00:07:06.680] We feature products that are processed in the State of North Carolina. [00:07:11.360] Baby food, country ham, dairy products, pickles, and various other items. [00:07:16.400] And we hope that as [00:07:19.760] the years go by that there will be hundreds and hundreds of other items [00:07:23.720] processed in North Carolina that we can sell during this sale. [00:07:27.720] Well, I know that this is good news for our farmers and processors in this [00:07:31.480] state, to know that they have an outlet such as this to sell their product. [00:07:35.360] Supermarkets, restaurants, [00:07:37.200] food brokers, and canners are all looking for the dependable, raw product. [00:07:42.320] They realize that there will always be a demand for fresh foods [00:07:46.160] but they seek to convince the farmer that food processing is a serious business proposition, [00:07:51.360] not a dumping ground for occasional fresh market gluts. [00:07:56.040] Although the food industry offers [00:07:57.840] financial improvement and added security, [00:08:00.320] Tar Heel farmers will not be able to reap fantastic rewards from it [00:08:04.760] as they sometimes do from produce buyers. [00:08:08.840] The contracting processor, [00:08:10.520] or the fresh produce buyer, [00:08:12.840] a choice that the food producer considers carefully. [00:08:17.760] Farmers who still take a lot of their fancy produce to the open fresh market [00:08:22.080] rather than to the more stable market—the food processor. [00:08:27.760] Here is FCX manager, Frank Tanner in Lumberton. [00:08:30.520] Our chief problem down here is developing and [00:08:35.360] receiving from the farmers a quality, raw product [00:08:38.360] which is necessary for us to fulfill our orders and ship out to our markets. [00:08:44.600] This winter we went up to the sandhills section to see about a supply of peaches. [00:08:51.480] While we were up to do the meeting, one of the big growers after the meeting [00:08:57.360] had developed for some time, he said, "Mr. Tanner, [00:09:00.920] we can adequately sell our first quality merchandise. [00:09:05.040] What we're interested in is for you having our cull peaches." [00:09:09.080] I said, [00:09:11.000] "Gentlemen," I said, "the term cull in our business means garbage." [00:09:16.200] I said, "In other words, you want us to be your garbage disposal." [00:09:24.360] I said, "No." I said, "We've got to have just a finer quality [00:09:24.360] to go in our cans as what can be attained." [00:09:26.640] We can't improve it. [00:09:28.280] So that means that we really have to have an adequate, quality supply of raw material [00:09:34.440] so that we can in turn turn out a quality product. [00:09:38.840] But Lumberton farmers, like farmers everywhere, [00:09:43.040] are rugged individualist used to deciding their own crops and markets. [00:09:48.720] One of the thorny problems in establishing a processing business, [00:09:52.520] is to recognize its relationship with the supplying farmers. [00:09:56.600] Contract farming is an agreement between [00:09:58.960] the processor and the farmer, whereby the processor guarantees a farmer [00:10:03.040] a price, pre-stipulated price, for the raw material the farmer is going to produce. [00:10:08.400] The farmer, in turn, [00:10:09.600] guarantees us as a processor that he will deliver these, [00:10:13.960] these vegetables to us of a certain quantity at harvest time. [00:10:19.800] That's good business and good farming, [00:10:24.000] but it wasn't easy for Roy to get this idea across to the farmers and done. [00:10:29.480] Well the first two or three years that we were here farmers were somewhat skeptical. [00:10:33.960] Very difficult to get agreements to grow produce for us. [00:10:38.160] But since that time, farmers have beginning to be more [00:10:43.640] dependent upon our contracts. [00:10:45.360] They've accepted our contracts [00:10:46.840] and our way of contract farming. [00:10:54.600] Mr. Westbrook, these look like some mighty fine peppers here. [00:10:58.240] How is your crop this year? [00:11:00.120] We have right nice crop. [00:11:02.080] How have farmers sold their crops in this area? [00:11:05.360] Well we've grown cotton and tobacco and vegetables. [00:11:08.600] That's been our line for years. [00:11:11.840] I'd say for years, [00:11:14.200] thirty, forty years I reckon. [00:11:16.280] We used to do [?] truck farming. [00:11:19.760] But we, at that time, we marketed everything fresh, fresh vegetables. [00:11:27.080] Why were you farmers so skeptical at first about growing for a food processing plant? [00:11:31.840] Why? [00:11:34.600] I think [00:11:36.480] probably they had gone some under contract. [00:11:40.200] Probably they won't be, [00:11:42.480] didn't prove satisfaction and they were a little bit [?] you might say [00:11:47.200] of going into this, but I think they're well figured now. [00:11:53.120] Their previous experience wasn't so good then, was it? [00:11:52.771] No, no. [00:11:54.160] That makes you a little bit more skeptical, you know, to get into anything. [00:11:58.000] It's a little bit—sometimes you think twice before you [laughs]. [00:12:05.480] Well, what is a farmer's attitude now [00:12:07.560] about growing under contract in this region? [00:12:10.800] Well, as long as the prices was four dollars a bushel, [00:12:17.360] why, we preferred the open market. [00:12:21.720] But when they get down to where they're a dollar a bushel [00:12:27.160] why then they come back here to [?]. [00:12:29.400] Well, you come up here and you sign your contract, you know [00:12:32.320] then the price that you are going to get [00:12:34.920] for that peppers when it's delivered here, in good condition. [00:12:44.080] Then it's up to you just to see how much of that you can grow per acre, [00:12:45.360] that means the profit that you get out of it. [00:12:47.800] You can concentrate all your efforts and energy on growing it and growing the right quality and so on [00:12:54.680] and let Mr. [?] over here worry about the market. [00:12:56.560] The dairy industry, unlike fruit and vegetable processing, [00:13:00.600] is a year round activity offering steady employment to contractors. [00:13:05.380] It is one of North Carolina's pioneer food industries, [00:13:08.560] stretching back to the time when [00:13:10.200] the state's people had to import, not only milk, but many other foodstuffs. [00:13:15.080] When most arable land was given over to non-food cash crops [00:13:19.600] dairying has made great strides in gendering with its such allied industries [00:13:24.080] as trucking and refrigeration. [00:13:26.880] Using modern and efficient machinery, [00:13:29.640] always applying the latest research, it can now purify and liberate from [?] [00:13:35.040] the raw product of milk and convert it into a huge rack of consumer goods. [00:13:40.680] No longer is there a dairy deficit in Carolina. [00:13:45.840] In dairying, [00:13:47.280] North Carolina has growing at a rate that even Wisconsin would envy. [00:13:51.320] A twenty year success story [00:13:52.800] increasing cash farm income by sixty million dollars. [00:13:58.040] Again, the attitude of the individual farmers [?] [00:14:01.960] as dairyman Glenn [?] points out. [00:14:05.120] We had an operation. [00:14:06.980] We grew a lot of our own food. We had various small farming enterprises— [00:14:12.320] some tobacco, some poultry, some dairy, but now times have changed. [00:14:18.680] We no longer have the time, can afford to take the time, to process our own food [00:14:27.880] and do these small operations that we had. [00:14:28.440] We now specialize in just one thing which is dairy, which is our sole income [00:14:34.320] and it is very important to us of course. [00:14:37.880] We now have to depend on selling raw milk [00:14:41.360] to our local dairy distributor who processes this for the public. [00:14:46.680] Of course, our success depends on the success of our [00:14:51.400] local dairy distributor and when he is successful in making a profit [00:14:58.400] that reflects on our income. [00:15:01.480] When he gets into financial trouble or [00:15:05.920] due to price squeezes and competition, that reflects on our income also. [00:15:12.720] When my father started dairying [00:15:14.440] we had approximately fifteen cows. [00:15:18.040] We realized that today we could not operate with fifteen cows. [00:15:22.320] We have increased to approximately four times that many. [00:15:26.800] We have to be larger and more efficient. [00:15:29.280] I think the key to success now is efficiency. [00:15:33.720] But if one farmer can specialize, [00:15:36.520] so then can another farmer diversify, try new enterprises, experiment [00:15:42.520] and become his own food processor, [00:15:45.200] like Lewis Upchurch of Raeford, North Carolina. [00:15:48.680] A farmer with small beginnings, [00:15:51.640] but big ideas. [00:15:53.840] We decided to try the fish farming enterprise. We [00:15:58.440] got our information from the southeastern part [00:16:01.400] of the United States and we believe it has real possibility within our area. [00:16:07.480] But it is a thing that will probably [00:16:10.440] come into its own in the next few years, it's not right at the present. [00:16:14.840] There is a big demand in the Midwest for commercially dressed and packaged [00:16:21.280] catfish of the channel variety, not our native mudcat. [00:16:27.240] We feel that perhaps we can raise more protein per acre through our ponds [00:16:31.600] than we can through our grassland. [00:16:33.686] We are a general farm consisting [00:16:37.280] of livestock, hogs, cattle, grow crops, timber management. [00:16:44.680] We have, only a little over a year ago, [00:16:47.640] begun to process country cured hams here on the farm. [00:16:52.200] And we have approached this the same with the idea that we would going into it [00:16:57.480] in a limited manner and as a market, or our particular market, grew [00:17:02.040] we would expand as necessary. [00:17:05.330] And we feel now that we are rapidly [00:17:07.280] approaching the point where we would desire to have federal inspection so [00:17:12.160] that we can move out of North Carolina and into an interstate market. [00:17:17.160] We have diversified, or tried to diversify, [00:17:19.920] our family farm enterprise due to the fact that we feel we should [00:17:24.840] spread our income out over more than just the fall period of the year. [00:17:30.800] Another such family enterprise, which grew from humble beginnings [00:17:34.880] on a farm in Alamance County centered on pickles. [00:17:39.960] Almost eighty years ago, [00:17:40.320] Cates Pickles began with grandmother Cates' [00:17:42.640] special Spring House recipe, whose success caused the family [00:17:46.640] to diversify operations and shift later to [?] in the middle of North Carolina [00:17:51.960] truck farming country, where the cucumbers are. [00:17:55.400] The vanguard of Cates' steady and measured progress has been research. [00:17:59.880] Work with North Carolina State scientists has led to the discovery [00:18:03.800] of superior techniques of processing and preserving pickles. [00:18:08.400] A. P. Cates has seen his company grow into a million dollar business [00:18:12.720] and has observed many refinements in food processing techniques over the years. [00:18:18.760] Some of the primary areas in which [00:18:22.640] conditions are so much different now from what they were when Cates Pickles were first manufactured [00:18:28.720] is first the securing of raw materials, [00:18:32.840] which were primarily produced on the family farm [00:18:37.040] at the beginning of the [00:18:39.960] manufacturing of Cates Pickles. [00:18:41.680] Now we are growing [00:18:45.320] cucumbers for pickles on approximately four thousand farms [00:18:50.520] in South Carolina, North Carolina, and Virginia, [00:18:53.000] however, they are primarily produced in North Carolina. [00:18:56.120] Cucumbers are very easy to produce, to grow, which can be done cheaply. [00:19:01.320] However, the most difficult part is picking, [00:19:04.000] and usually a crop has to be picked twelve or fifteen times. [00:19:08.960] Usually about three times a week for four to five weeks. [00:19:13.280] For Cates, the green season is a frenzied harvest time [00:19:17.040] when half a million bushels of cucumbers [00:19:19.240] are gathered from five thousand farmer contracted acres. [00:19:23.120] Quite a change from the gay 90s, [00:19:25.200] especially when the massive harvest and processing begins. [00:19:29.440] If new varieties and proper [00:19:33.280] mechanical harvesting aids can be successfully developed, [00:19:37.640] it will probably mean that instead of one and one half acres per producer [00:19:42.440] that the producers of the future will produce from fifty to seventy-five acres each. [00:19:47.880] There will always be an opportunity for the small food processor, [00:19:52.520] as Cates once was, [00:19:53.640] wherever there is an appetite or a need, [00:19:56.560] but we have now entered the larger stage of national markets. [00:20:01.310] This means that vast corporations are [00:20:03.360] turning their eyes to North Carolina— [?], Swift's, Gordon's, and Gerber's. [00:20:11.200] These big firms, once settled in a new locale, do not stand alone. [00:20:16.640] They depend on the cooperation of local people. [00:20:20.640] Manager John Erickson of Gerber's plant, [00:20:23.320] high in the Appalachians of western North Carolina. [00:20:26.680] We believe that we have a very, very fine relationship with the farmers. [00:20:33.760] [audio skip] little afraid of us at first because it's my understanding that there have been several, [00:20:38.360] what I would call a fly by night processors, that were here for one year and they [00:20:42.460] contracted with the farmer, but never lived up to the contract. [00:20:45.760] So, I believe after they saw us build this size building we've built, [00:20:53.160] pouring several million dollars into it and about equal amount of dollars [00:20:57.800] into equipment, that they could see that we were here to stay. [00:21:02.320] And today, I believe we have the finest [00:21:04.760] relationship with the farmers that anybody could have. [00:21:08.800] Many people have asked [00:21:10.160] why we chose western North Carolina for our plant site. There are many reasons. [00:21:15.280] Probably the number one reason [00:21:17.640] is the fact that we're close to our source of supply of fruits and vegetables. [00:21:23.400] Number two, we had to have transportation to deliver the [00:21:27.520] finished product to our customers [00:21:29.160] and also have transportation to bring it into our plant. [00:21:33.880] We also needed a labor supply that [00:21:37.160] there was plentiful and willing to put out a day's work. Which, I might say, [00:21:42.400] we're very satisfied with. [00:21:44.960] We had have adequate water supply, [00:21:47.360] it had to be plentiful and it had to be clean. [00:21:51.080] We also needed, after using this water, [00:21:54.710] we had to get rid of, we had to have a waste disposal. [00:21:57.560] And all these things were provided in our location here in Asheville. [00:22:03.280] Gerber's of Asheville pays out millions of dollars annually for supplies [00:22:07.200] and for farm products such as beans, carrots, potatoes, squash, [00:22:12.000] peas, apples, and peaches. [00:22:14.760] Twenty million pounds of produce a year, [00:22:17.840] almost a thousand man labor force. [00:22:21.160] Gerber's has indeed made an impact on the Asheville area. [00:22:25.800] That additional industry, which a Gerber factory has fostered. [00:22:30.040] Let's find out from one of its workers, that story. [00:22:33.960] Pardon me, sir. [00:22:35.720] Are you employed by another food processing firm? [00:22:38.520] No, sir. This is no food processing plant. [00:22:41.370] We make glass jars here. [00:22:42.757] I and three hundred other people make [00:22:46.200] jars for the processing plants that are springing up in North Carolina. [00:22:50.560] A new industry like food processing is bound to create a big splash. [00:22:55.360] Its economic influence ripples out in every direction. [00:22:59.000] Produce Processors Incorporated, [00:23:01.720] PPI, as it's called, is a factory that sprang up in [?], North Carolina [00:23:07.400] soon after North Carolina State scientists saw [00:23:09.480] the flaking of sweet potatoes to make them more uniform, [00:23:13.200] the result of food processing research. [00:23:16.440] Now without that, taking this raw sweet potato, converting it [00:23:23.920] into instant yam or sweet potato flakes, it would have been an impossibility. [00:23:30.240] We would have never round out our first product. [00:23:33.520] Now we can take the sweet potato, you take a number one sweet potato, [00:23:38.480] there's still a market for it fresh. [00:23:41.040] You don't need to process it. [00:23:43.120] Where we can take the smaller potatoes, [00:23:45.760] the larger potatoes, the misshapen potatoes, the internal meat [00:23:51.280] of that potato is still the same. [00:23:53.600] When we take and flake it in our flaking process and come up with it in the can [00:24:00.000] I can't, [00:24:00.640] and no one can tell, whether it came from a pretty number one, [00:24:04.480] whether it came from a two, or a jumbo, or what. [00:24:07.320] In the food processing business today, everything hinges on uniformity. [00:24:14.720] We sell a man in January, we sell him in June, [00:24:15.360] he wants the same product both times. [00:24:20.280] The nucleus for food research is at North Carolina State. [00:24:24.140] The twenty-five man Department of Food scientists keep in close touch with a food farmer, [00:24:28.240] the processor, and the consumer. [00:24:31.160] Now our research scientists already have many achievements to their credit. [00:24:35.120] Their work, for example, in cutting the curing time of country hams, [00:24:39.120] removing all flavors from milk, for longing the shelf life of [?] and eggs, [00:24:44.160] producing sweet potatoes into pumpkin flakes. [00:24:47.440] Now we also have a Department of Extension that provides [00:24:50.640] information for those people who are working in the field to keep them [00:24:54.360] up to date, to keep them modern and progressing. [00:24:57.600] Also, we have a training program that educates [00:25:00.400] many young men and women to become leaders and specialists in the food industry. [00:25:07.320] Now in return, in the future with students [00:25:08.720] at institutions like North Carolina State College, [00:25:12.160] they could send students into the field, to us or anyone [00:25:16.960] in the food processing business, and those students could learn [00:25:22.160] from industry what they can't learn from textbooks. [00:25:25.760] The last two summers we have sent one of our young men out of our plant [00:25:30.720] up to North Carolina State College to work with Dr. Hoover [00:25:35.040] in research on our product primarily. [00:25:38.360] Now, this boy has come back, has learned a lot and has been a help to us. [00:25:42.440] I got out of high school in 1960 and I worked for a year [00:25:47.030] and I started reading about produce processors getting started and [00:25:50.800] I became quite interested in it. [00:25:53.680] And I came out and applied for a job and I was hired. [00:25:57.800] I worked one season with them and chance came up for me to go to State College [00:26:05.220] for the summer months and worked with Dr. Hoover in his lab [00:26:08.880] Our instruction program for [?] students who want a career in the food industry [00:26:13.040] to prepare themselves with a university degree. [00:26:17.080] We sketch the story of food processing in North Carolina, [00:26:20.960] a modern version of a story as old as man himself. [00:26:24.960] The best possible preparation of his daily bread. [00:26:28.240] Food processing is not an easy industry. [00:26:31.080] This mining of food from the soil, [00:26:33.240] this [?] and readying of food [00:26:35.080] for the market squares of the nation and the world. [00:26:40.840] Food processing is an industry that will generate new markets, new jobs, new hope. [00:26:47.760] It is a fresh chapter in the two hundred year old [00:26:49.970] history of North Carolina's agricultural way of life. [00:26:52.520] [music]