By Dan Lemke

Ten years ago George Bush occupied the White House, democracy was taking hold in the Soviet Union, and a small but unique nonprofit organization — the Agricultural Utilization Research Institute — was born.

Since then, Minnesota farm crop utilization “has increased because of new value-added ventures.” says AURI Executive Director Edgar Olson. “But these successes didn’t come overnight and we’re working to develop more.”

In the late 1980s, Minnesota commodity groups, farm organizations and agribusiness saw AURI as a mechanism to generate new uses for farm goods piling up in the state. Lawmakers also saw the need and established the Institute, which began operating under the umbrella of the Greater Minnesota Corporation (now Minnesota Technology, Inc.) in 1988. In September of 1989, AURI incorporated as an independent nonprofit organization.

"It was ground zero,” recalls Keith Sannes, AURI deputy director. “We had to do everything from hiring employees to buying pencils because we were starting from scratch.” Sannes was one of the first employees of the newly founded institute, hired as general manager of the Northern Field Office in Crookston.

Shaping the reality

Julie Bleyhl, who chairs the AURI board, was among those who pushed for AURI’s formation. “The driving force was the surplus of grain ... There was a feeling that overnight we’d be able to develop a use that would use up the surplus and increase prices,” recounts Bleyhl.

Reality has tempered that outlook. “There just aren’t many of those types of projects out there,” Bleyhl says. “We quickly realized that a series of smaller innovations could make a big impact.”

Initial plans called for one AURI center in the rural area of the state. But after listening to presentations and visiting numerous Minnesota communities, the site selection committee changed plans and awarded offices to four cities — Crookston, Morris, Marshall and Waseca. While the decision was criticized by some as politically motivated, time has shown that the four sites allowed for greater public access from anywhere in the state.

“Part of our mission was to spur the transfer of technology from universities out to businesses. And we wanted to operate quickly. Having the regional offices definitely made us more accessible,” says Cindy Green, an early employee.

Getting the word out

The first challenge for the infant organization was to let the world know it existed. Sannes says he and his counterparts in Waseca, Morris and Marshall took to the radio waves, spoke to countless service clubs, farm groups — to anyone who would listen to them describe AURI’s mission. At the same time, they sought input on what people wanted from the Institute.

A strong partner in getting the AURI concept out to the public and to would-be entrepreneurs, Ag Innovation News began rolling off the presses in January, 1992. Green, managing editor, says, “From the beginning we wanted to highlight the courageous ones who risked savings and livelihood to devise ag-based products. The last thing we wanted to be was another ‘justify ourselves’ agency publication that only insiders cared about. We wanted to educate and inspire anyone interested in innovation — America’s greatest asset.”

Designing the programs to assist businesses in commercializing new uses was a challenge. There were no roadmaps to follow; AURI was breaking new ground. Eventually AURI staff decided on a mixture of applied research and one-on-one assistance not offered anywhere else in the country.

As a research institute, the construction of laboratory facilities and pilot plants was a substantial component. In 1992, a pilot plant and food and product development lab were built in Crookston for work with vegetables, cereal products and more.

A fats and oils lab in Marshall was added the same year to research innovative industrial products such as biodiesel. Another Marshall lab for meat product development and food safety training was set up just last year and is featured in this issue. (link to article)

In 1993, AURI launched a waste utilization program in Waseca and later added a lab for developing new uses for low-value products such as crop residue, animal mortalities and manure.

“It was always part of the plan to have facilities and to offer technical assistance,” notes Sannes. “It’s an important facet of what we’re all about.”

Tempered by time

Delivering the best bang for the buck while meeting real-life business needs “continues to be a challenge for us today,” Olson says. “We’re constantly evaluating our programs and services to best meet our mission of adding value to Minnesota agriculture.”

“Back when we were formed, we were supposed to help use up these piles of grain so growers could continue in high-volume production,” Sannes says. “Farmers and commodity groups are realizing now that value-added agriculture is also about reaching specific markets.”

“We’ve been able to bring together staff that complement each other in the services they provide,” Bleyhl adds. “We can determine both technically and financially what ideas can and cannot work. We’ve also been able to put in place a unique network of resources available to people throughout the state.”

The blend of business assistance, technical assistance, financial support and technology transfer is what makes AURI one-of-a-kind, Olson says. “We try to be unique and different in the services we provide, but we also multiply our efforts by connecting with others. We’re doing this through efforts such as the Co-op Development and Ag Diversification programs with the Minnesota Department of Agriculture and the University of Minnesota.”

The need is great

Times may have changed over the past decade, but the need to generate new value-added uses has not. Commodity prices, subject to world market pressures, are lower now than they were ten years ago and farmers are at a crossroads. But value-added ventures still offer hope.

"I really think AURI has played a key role in giving agriculture a better chance of succeeding," Sannes says. "It's tough now, but without value-added opportunities it would be even tougher."