Study identifies opportunities to expand agricultural manufacturing and processing in North Carolina

RTI analysis identifies manufacturing and processing investments that could strengthen local supply chains and return benefits to North Carolina farmers

RESEARCH TRIANGLE PARK, N.C. — A new study found that targeted investments in agricultural manufacturing and processing could help North Carolina farmers access higher-value and more reliable markets if they are designed with a farmer-centric approach and local sourcing strategy.

The study, commissioned by the North Carolina Department of Agriculture and Consumer Services (NCDA&CS) and led by researchers at the independent scientific research institute RTI International, identifies 11 near-term and four emerging opportunities across nine commodities where expanded manufacturing and processing capacity could deliver greater value to North Carolina farmers while supporting rural economies.

Opportunities highlighted in the analysis include for apples (juice, puree, or cider processing for legacy processing varieties); sweetpotatoes (gluten-free flour and pet food manufacturing for excess and Grade B crop); and red meat (value-added processing of jerky, hotdogs, and smoked meats).

“Value-added investments in ag manufacturing and processing offer great potential to our farm economy, but we want to be strategic with these investments to have the greatest impact,” said Gregory Hoggard, assistant director over NCDA&CS Agribusiness Development. “This study helps us focus our efforts.”

The research team drew on stakeholder interviews, secondary research and participatory workshops to prioritize opportunities that show both near-term investment readiness and potential to deliver meaningful benefits to farmers.

“Across commodities and regions, study participants emphasized that expanding value-added processing alone does not guarantee success,” said Amanda Rose, agri-food systems lead at RTI and lead author of the study. “A farmer-centric approach, one that prioritizes local sourcing, risk sharing and meaningful partnership across supply chains, is essential to translating expanded manufacturing and processing capacity into real, durable benefits for farmers.”

The analysis was designed as a practitioner reference guide for policymakers, funders and industry leaders working to strengthen North Carolina’s agricultural value chains. It aims to inform the strategic priorities of North Carolina Agricultural Manufacturing and Processing Initiative (NCAMPI), which provides grants to private businesses to strengthen the state’s agricultural manufacturing and processing capacity, and other efforts to strengthen agricultural manufacturing and processing (M&P) capacity in the state.

Significant variation across commodities, regions and value chain structures were identified, highlighting the need to assess the underlying economics of each opportunity. The report finds that this understanding is critical to long‑term viability and to ensuring farmers can capture value from expanded manufacturing and processing capacity. The report also notes that while NCAMPI can enable progress, deeper coordination across state agencies and partners is needed to deliver sustained benefits to farmers.

To date, NCAMPI has awarded 24 grants valued at approximately $26.6 million across three rounds of grantmaking to support the creation and expansion of agricultural manufacturing and food processing facilities across North Carolina. The most recent round of funding in January 2026 allocated $7.6 million across 10 projects focused on communities recovering from the impacts of Hurricane Helene.

Read the executive summary

Read the full report

About North Carolina Department of Agriculture and Consumer Services 
The mission of the NCDA&CS is to provide services that promote and improve agriculture, agribusiness and forests; protect consumers and businesses; and conserve farmland and natural resources for the prosperity of all North Carolinians.

About RTI International 
RTI International is an independent scientific research institute dedicated to improving the human condition. Our vision is to address the world's most critical problems with technical and science-based solutions in pursuit of a better future. Clients rely on us to answer questions that demand an objective and multidisciplinary approach—one that integrates expertise across social, statistical, data, and laboratory sciences, engineering, and other technical disciplines to solve the world’s most challenging problems. For more information, visit www.rti.org.