Thursday, March 20, 2025
Sharyce, Ruth, Braden and Corey started the day by visiting Walnut Grove Mercantile, owned by Steve and Kay Klein. The Klein family started their business in 1951 with beekeeping and grew into one of the most successful honey producers in the nation. They won 16 National Honey Championships and utilized 2,000 hives across five counties to produce 200,000 to 250,000 pounds of honey annually. In the early 1990s, the family faced a crisis as honey production dropped from 100 pounds per hive in 1990 to 18 pounds per hive in 1993. What was once the best geographic area in the nation for honey production has become a honey production desert. The reason is the transition to monoculture farming, which reduced alfalfa and pasture acreage in southwest Minnesota, leaving bees with no nectar habitat. Although faced with disappointment, the Klein family pivoted their business plan and looked to fudge to bridge the revenue gap. In addition to the new production line, the Klein family also rebranded the company as Walnut Grove Mercantile to take advantage of the popularity of the Laura Ingalls Wilder books, videos and pageant. It turned out to be a hit, and soon fudge from this small family operation was being sent around the country.
The new fudge machine was paid off in 6 months under the new business plan. To improve the proprietary of their brand, the family researched their own fudge recipes with the assistance of AURI. Steve and Kay Klein know that consumer preferences change and that business plans need to evolve. 
Most recently, the family began wrapping individual caramels from the caramel used in one of their most popular fudges. Today, they produce ¼ million individually wrapped caramels and over 50 tons (100,000 lbs.) of fudge, of which approximately 80% is shipped nationwide. This is in addition to the many unique games and gifts you’ll find in the retail shop of their headquarters along Hwy 23 in Marshall.
The Klein family has been a Chamber of Commerce member for decades. They attribute their success to community relationships (including those with SMSU), strategically relocating their business in 2000, and visionary leadership that enabled them to pivot their business plans.
Next year, they will celebrate 75 years in business, an impressive milestone.
We then headed to SMSU – Southwest Minnesota State University, which experienced the largest enrollment growth percentage of all the MN state colleges in the 2024/2025 school year. Combine this impressive stat with SMSU being the only MN state college to have an increase in enrollment in the 23/24 school year, and you end up with a combined enrollment growth of 36% over the last 3 years. This is no surprise to university leadership, as the president has a goal of increasing enrollment by 50% over the next five years. 
In a recent study, SMSU found that approximately 3,000 Alumni live within 30 miles of Marshall. Most students aren’t naturally drawn to the area because it lacks recreational activities like mountains, lakes or a warm climate, and the retail offerings are sufficient, but basic. The university suggests that affordable tuition rates (relative to other universities), a small school feel, and successful athletic programs are a few reasons students are drawn to this university on the prairie. 
The benefits of a university in the Marshall community are significant. SMSU is one of the top employers in town, and it boosts retail sales by attracting university students, as well as offering athletic and art entertainment opportunities for community members. The athletic facilities also bring in regional high school tournaments. As you travel into Marshall on Hwy 23 or Hwy 19, you can’t help but notice the impressive campus donned with a stampede of mustangs running in the center of the horseshoe pond, inviting you to the university and the city.
We then hosted lunch with the City, Chamber and leadership from ADM. Main Street Marshall is healthy according to city leadership. This is certainly true from an appearance standpoint. The streets are clean, the sidewalks are free from heaving, and there’s a new city hall in the center of Main Street that’s accented by a plaza for reading, catching up with friends, or eating lunch. Murals on multiple buildings highlight the region’s athletics, arts, and prairie. 
When asked what do you show prospective employees when they’re considering moving to Marshall, Eric McVey from ADM was quick to point out there are great schools (public PreK – 12 and three private Prek-8 grade schools) with successful “state” level athletic and arts programs, an ice arena that is considered one of the top 4 in the state, as well as many other student engaging programs. Additional amenities to showcase in and around Marshall include a charming downtown area with many locally owned retail shops and an extensive bike trail system that connects the city of Marshall to the pristine Camden State Park, located 10 miles south of town.
While there is much to celebrate and highlight in this rural community, there are also some challenges. One of those challenges is affordable housing. While many employers offer competitive hourly wages, it is challenging to find quality homes for sale under $200,000. This is one of the factors that contribute to nearly 45% of the residents being renters, according to city officials. 
Another challenge is combating an effective marketing campaign from South Dakota. With Marshall only 36 miles from the SD border (60 miles from Brookings, SD and 90 miles from Sioux Falls, SD), many residents and businesses receive direct invitations from the state of South Dakota to join them, where there is no income tax and historically less regulation. 
As we concluded our conversation, Brad from the Chamber of Commerce said “there is a misconception that there is nothing to do in Marshall…..There is more to do in Marshall than people realize.”
Our final scheduled visit of the day was Ralco Nutrition. Ralco Nutrition is an international feed ingredient company that started in a garage in 1971. Over the last 50+ years, Ralco has expanded to a global presence and currently occupies multiple sites in the Marshall community, featuring office, warehouse, and manufacturing facilities. Despite its impressive growth, Ralco has remained true to its core principles of faith, family, and doing what is right. This foundation, combined with a focus on selling high-quality products and hiring an impressive research team, led to the creation of a new business line of animal supplements. The company’s all-natural supplement growth recently surpassed feed ingredients as its leading product. 
When entering the Ralco office, one couldn’t help but notice the intentional focus on each employee’s strengths. Each employee’s name placard listed their top five characteristics. This unique statement not only reminds employees each day of their strengths but also guides coworkers on how to approach one another for effective collaboration.
One of the key takeaways from our Ralco visit was observing how intentionally the company utilizes individual strengths for specific roles within the organization.
Upon concluding our scheduled visits, our team walked down Main Street and randomly stopped in at a few small businesses. We received a warm reception from all four businesses we randomly visited. 
A couple of resounding themes were evident in these impromptu interviews. When big-box stores came to town, the business plans of a couple of the small, main-street businesses were no longer effective. Their plans needed to be revised. How would they compete against price? How long will our business be viable? Each of the businesses succeeded in its way. Some changed the product line they offered to differentiate themselves, while others promoted service after the sale. All the businesses expressed gratitude to their loyal customers.
The diverse cultures of Marshall create business opportunities for international grocery stores and restaurants. With approximately four of each of these businesses in town, the international community offers the community multiple options for cuisine. Unfortunately, in recent weeks, a few of these businesses have noticed a decline in patrons due, in part, to federal administration policy changes, indicating an overall fear of our international community being out in public.
Our team had a great time with both our scheduled and unscheduled interviews. In fact, we helped position a mirror on the wall at one of our “drop-in” visits. The stories of overcoming adversity, pivoting a business plan when things don’t go as planned, and utilizing employees’ strengths to advance the business stand out most to our group. Everyone in the group enjoyed the day and learned more about our community and the businesses it supports! 
Blog contributors (L to R) Braden French, Corey Prins, Ruth Lanoue, Sharyce Baartman.
