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Food products are a specialization, an industry of excellence, and the largest sector of manufacturing employment in the state of Iowa. Over 700 food industry businesses are located in the state and the industry provides Iowa with 55,000 jobs.

All but one of the top 10 food companies in the United States have operations in Iowa. Their success rests on a profit building environment that includes:

  • Proximity to raw material - Iowa is the number one producer of corn, soybeans, eggs and pork in the United States
  • A critical mass of food companies
  • Competitive energy costs
  • No sales tax on energy used in processing
  • No sales tax or property taxes on machinery and equipment
  • Low workers' compensation costs
  • A refundable R & D tax credit of up to 13%

Iowa generates one-tenth of the nation’s food supply. 30 of the largest 100 food manufacturers benefit from Iowa’s business climate, including Barilla, Nestlé, Kraft, Heinz, Pepsico, Tyson Foods and Quaker Oats. European food ingredient companies like J. Rettenmaier & Soehne, Kerry Group, Gelita, Roquette America, Associated British Foods and Tate & Lyle add to Iowa’s excellent food processing infrastructure.


The strong packaging and plastics business in Iowa is interdependent with the finished foods industry – meaning Iowa’s food processing companies are well supported. Over 70 companies in Iowa are directly involved in the food packaging industry.

Please see Iowa Business Sphere Vol. 20 No. 2 for more information.