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A short history of Dakota Prairie Organic Flour

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The company was founded as Earth Harvest Mills in 2004 by brothers Eric and Grayson Hoberg, but currently operates under the name Dakota Prairie Organic Flour. The brothers purchased a 4,000-square-foot building that was previously a vet clinic in Harvey in 2004 and began operations after adding 4,500-square-feet for milling and packaging.

Beginning with four products and two customers in their first year, the company has grown to more than 90 customers and 60 gluten-free and organic products currently, exporting a majority of their products to Asian countries like China, Japan and Singapore.

Grayson Hoberg, CEO of Dakota Prairie, said their success came from the expansion of the organic and gluten-free markets over the last couple of years. In 2008, he said, the organic bread and grain industry grew by 35 percent and the gluten-free industry grew by 27 percent. For DPO, that translated into growth of 174 percent, or nearly $10 million in revenue.

As the company has expanded financially, so has it physically, undergoing construction nearly every year.

In 2007, they built a new 6,600-square-foot building for packaging and then in 2008 they added a 6,600-square-foot warehouse onto the packaging facility.

The current expansion, which began in 2008 and is scheduled to be completed in 2010, is the largest to date at more than 18,000 square-feet and will include several new pieces of equipment and technology, an increase in storage capacity and space for current and future employees.

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More than 75 people, including federal, state and local officials, were on hand this past week to celebrate the new $11 million, 18,953-square-foot expansion to the Dakota Prairie Organic Flour processing plant in Harvey.

The facility processes organic soft and hard red and white wheat, durum, spelt and rye among others in addition to its more than 60 varieties of bread, cookie and cake mixes and its all-purpose and gluten-free flour products. Currently under way and expected to be completed by August 2010, the expansion will increase the facility's overall capacity from 23 million pounds to 185 million pounds per year.

Gov. John Hoeven, one of seven officials to speak at the event, reflected on the progress Dakota Prairie has made since he first met with owners, brothers Eric Hoberg and Grayson Hoberg in 2003.

"These guys are true entrepreneurs. They had an idea and went for it with the help of their family and several businesses," Hoeven said. "They started with 4,000 square feet and now have 40,000 (square) feet. Who knows where they will go from here."

Hoeven used the success of Dakota Prairie to highlight the need for continued growth in the state's agriculture industry.

"Looking at agriculture, we are in a very exciting time. There are always challenges with the fall in crop prices and the recent weather, but looking long-term at the business picture, it's a very, very good time. Food, fuel, fiber," he said, echoing his long-held agricultural mantra. "I believe agriculture will continue to grow in North Dakota, not just in raising crops and livestock, but in value-added products that increase fuel and fiber. Expanding the base is key. These guys (Dakota Prairie) kept their eye on the ball. We need to keep expanding and moving forward."

To help the company continue to expand, Jasper Schneider, newly appointed state director of the USDA Rural Development program, presented a check for nearly $7.4 million to the Hoberg brothers at the ceremony.

"This is the type of project that the USDA is so proud to be a part of," Schneider said. "Not only does it create jobs, but it expands the markets both domestically and internationally."

Since meeting with the company in 2002, USDA Rural Development has provided Earth Harvest Mills, parent company of Dakota Prairie Organic Flour, with four guaranteed loans totaling nearly $9.6 million.

The loans from USDA and other entities has allowed the business to move forward with its newest and largest expansion to date.

In addition to the new floor space, the expansion also includes the purchase of additional milling and mixing equipment, 52 new raw and finished goods grain storage bins, lab and lab equipment for testing flours and grains, truck and rail scales, new employee offices and accommodations, new security and operational computer technologies and for the first time, direct access to rail transportation.

The physical expansion will also lead to the expansion of staff.

Currently there are 26 employees, Grayson Hoberg said, but the company will be adding 10 more over the next year.

"It's been a team effort, but we are very excited about the future," Grayson Hoberg said, adding the company anticipates a 300 percent growth in the next few years.

That future includes Harvey, a small town of 2,000 people.

"We couldn't have asked for a better place to be," said Eric Hoberg. "They have been financially and personally supportive of us throughout the years and we look forward to being a part of the community."