Two Minnesota food companies are joining forces to expand indoor shrimp farming in the state's landlocked southwest corner.
Marshall-based Schwan's Co. is taking a minority stake in Tru Shrimp Co., an affiliate of Ralco, a maker of animal feed. Tru Shrimp uses technology to simulate a natural bayou where it then grows shrimp that the company says is safe and affordable for human consumption.
Headquartered in Balaton, a town of about 600 residents about 20 miles south of Marshall, Tru Shrimp announced earlier this summer plans to build a 4,000-square-foot shrimp hatchery in Marshall.
At the same time, the company also committed to building a $50 million facility in Luverne, about 60 miles south of Marshall, where the baby shrimp will be transported for feeding and growth.
The Schwan's deal announced Monday revealed the final step in production. Schwan's will lease a portion of one of its processing plants in Marshall to Tru Shrimp. Once the shrimp reach full maturity in Luverne, they will be transported back to the Schwan's plant for final processing and packaging.
Schwan's would not provide a specific investment amount other than calling it "significant."
Executives at Schwan's, a maker of frozen foods and a specialist in home delivery with $3 billion in annual sales, have been watching Tru Shrimp's development for some time, chief executive Dimitrios Smyrnios said.
"We are intrigued and excited about the possibilities of inland shrimp production and view this as an excellent opportunity to provide consumers with a predictable and traceable supply of nutritious shrimp," Smyrnios said in a statement. "We are also proud to work with Tru Shrimp as it develops its core business in our hometown of Marshall to the benefit of the southwest Minnesota area."