Otay Mesa is Home to 38 Firms Specializing in Food Manufacturing and Distribution
South County Economic Development Council (SCEDC) released a food manufacturing and distribution industry study today highlighting the South County Clusters’ positive economic impact. The study not only reveals the economic perspective, but provides a road map for business leaders and organizations to cultivate the ever growing food manufacturing and distribution industry in South County.
“This study is our gateway to recruit food manufacturing companies and to build on this growing industry. We will leverage business incentives such as tax savings advantages through the Enterprise Zone Program and Foreign Trade Zone to attract these companies. Additionally we will maximize the economic impact of the food manufacturers by looking for local suppliers and service providers to support this industry and create business to business connections,” states Cindy Gompper Graves, CEO of SCEDC. “The findings will assist SCEDC and its constituents in stimulating business investments and job growth in South County.”
In the San Diego region, the food manufacturing segment comprises 175 firms and approximately 5,050 jobs. The Otay Mesa food manufacturing segment employs approximately 1,000 employees which equates to more than 41 million dollars in payroll.
In addition, this industry cluster is generating nearly 184 million dollars in economic activity for the San Diego Region. Most of the food manufacturing activities in Otay Mesa are concentrated in tortillas, frozen foods, baked goods and cheese and dairy products. “The food cluster study recognizes the synergism that exists when businesses locate in a sub-market that offers excellent labor force participation, State Enterprise and Foreign Trade Zone tax benefits and an inventory of available properties. The study is a valuable tool in attracting other food related businesses to Otay Mesa area,” said Linda Greenberg, Commercial Realtor, Colliers International Real Estate.
The study also reveals that the wholesale distribution segment is growing in Otay Mesa. Currently, there are 283 firms in the San Diego Region that offer wholesale food distribution services and provide 4,700 jobs. Approximately 30 wholesale food distribution firms are located in Otay Mesa and employ approximately 460 workers.
The leading companies in the cluster include Cantare Foods, Circle Foods, Delimex and S & S Bakery. Several of the firms in this industry cluster are located in the Otay Mesa community primarily due to the availability of industrial space, affordable price of land and proximity to the United States – Mexico International border. According to the study, many of the firms in the cluster obtain their produce from suppliers in Baja California and Western Mexico and sell it to wholesalers in the United States. However, products such as meat, pork and poultry are purchased from suppliers in the United States and exported to Northern Mexico for distribution. Another reason cited by the food manufacturers was the Foreign Trade Zone and the Enterprise Zone that offer tax incentives to companies locating in South County.
“We have core group of partners willing to assist food-related industries that are interested in relocating or expanding in Otay Mesa with tax incentives, permitting and referrals in the San Diego/Baja California cross-border region,” said Alejandra Mier y Teran, Executive Director of the Otay Mesa Chamber of Commerce.
A copy of the study can be found at www.sandiegosouth.com. For more information or to schedule an interview, please contact Cindy Gompper-Graves, CEO SCEDC at (619) 424-5143 or cell (619) 921-0085.