(Bloomberg) -- Poultry producer Bell & Evans started construction on a $330 million organic-chicken plant, using a so-called green loan to help finance the project as more Americans eating at home during the pandemic demand healthier foods.
The 411,500 square foot building in Fredericksburg, Pennsylvania, will be operational by late 2021, the company said in a statement Tuesday. Bell & Evans said the green loan, provided by Rabobank, is the first in U.S. poultry.
The announcement comes as many consumers prioritize nutrition over costs after Covid-19 outbreaks spurred a focus on health. U.S. sales of organic food and drinks rose 25% for the 17-week period ending June 27, according to Nielsen data. The additional capacity will allow Bell & Evans to continue expanding its organic production to about 50% of total output, the company said.
Bell & Evans owner Scott Sechler said in an interview that his business has seen an increase in sales during the pandemic.
“They're concerned now about trust, and they're cooking at home,” Sechler said. “They became more foodie than they ever were because they couldn't go out to eat at their favorite restaurant. Their favorite restaurant became their own cooking.”
READ MORE: Americans Use Pandemic to Get In Shape With More Organic Food
As part of the green loan, the new facility must support environmentally sustainable practices, Bell & Evans spokeswoman Heather Hitz said in an email. The site will include features such as reused water, energy efficient heating and 100% recycled material used in case pack boxes, as well as avoiding pollutants that harm the environment.
Bell & Evans currently processes about 400,000 organic chickens per week, or 36% of total U.S. organic chicken production. By early 2022, when the new chicken harvesting plant is fully operational, that will increase to about 600,000 per week, or almost 55% of the current U.S. total, according to the company.
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