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v ECONOMIC OUTLOOK mncsoia business owner David Melberg uun cite plenty of reasons for optimism Matiout the future of the slate's economy. Like most entrepreneurs.Melberg recognizes that a balanced state budget,a highly educated work force,it Twin Cities venture-capital pool Wh rivaling that of any metropolitan area this size in the nation,and a wide variety of healthy in- dustrial sectors provide Minnesota with a solid shield against the recession that many econo- mists predict will hit the nation in the next two to five years.What many may not realize is that the industry Melberg joined in 1971 is probably inneso a the best weapon in the arsenal Minnesota has to draw on to defend against the next economic downturn. A Hector-based farmer who grows corn.suy- bcans,and sugar beets,Melbcrg exemplifies the carefully diversified,financially astute,and for- ward-looking players who dominate the state's agriculture sector today.Heiberg funnels his crops through seven"closed"cooperatives in M t which he's an investor.Through such opera- . . " lions,farmers pool money to build facilities where value is added to their raw commodities. Rattling off a lengthy anti eclectic list of prod- ' ucls generated by the cooperatives,Melberg ca- sually describes the demand for the soybean- ' meal-fed specially fish he and other investors f are planning to raise through the MinAqua co- 6d' operative."Tie tilapia,which used to be called the African perch,doesn't have its own distinc- • tive taste—it's not fishy.Chefs like that because they would rather add their own flavor,with Cajun spices for example,and not have to cover I Up the fish taste,"he says. In addition to his growing knowledge of culi- nary preferences.Melberg probably has a better understanding of options and futures than most . M kbrokers.And he keeps as close an eye on changing international pulilical and economic dynamics as any other exporter in the state. Coupled with the slate's concentration of leading fool processors and agribusinesscs. farmers like Melberg—equipped with sharp business skills,constantly improving technolo- gy.and it recently overhauled,market-oriented federal farm bill—make up a robust industry Our lapmers—who today run diverse,efficient,high-tech operations— poised to take advantage of rapidly growing de- mand for food.With one in four workers in the and ag related industries are poised not only to plow under the next recession slate directly or indirectly dependent on the that blows across the prairie,but are positioning their businesses sector for their jobs.Minnesota agriculture to feed a growing global marketplace. promises Ili propel the state's economy well in- to the next century. No smal By Kate Peterson "I"hc Minnesota Department of Agriculture esti- 34 OCTOBER 1996 TWIN CITIES BUSINESS MONTHLY •