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 Championship’s and used 2,000 hives across 5 counties to produce 200,000 to 250,000 lbs. of honey annually. In the early 90’s the family was faced with a crisis as honey production dropped from 100 lbs. per hive in 1990 to 18 lbs. per hive in 1993. What once was the best geographic area in the nation to produce honey became a honey production desert. The reason… 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.
Klein family has been a Chamber of Commerce member for decades. They contribute their success to community relationships (including SMSU), strategically relocating their business in 2000, and visionary leadership to pivot business plans.
Next year they will celebrate 75 years in business, an impressive milestone.
We then headed to SMSU – Southwest Minnesota State University experienced the largest enrollment growth percentage of all the MN state colleges in 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 leadership at the university as the president has a goal of increasing enrollment by 50% over 5 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 recreation 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 community of Marshall are significant. SMSU is one of the top employers in town, it increases retail sales with university students, along with 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 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 stand point. The streets are clean, sidewalks are free from heaving, there’s a new city hall in the center of main street that is accented by a plaza for reading, catching up with friends, or eating lunch and murals on multiple buildings highlight the athletics, arts and prairie of the region. 
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 great looking downtown with many locally owned retail shops and an extensive bike trail system that connects the city of Marshall to a pristine Camden State Park 10 miles south of town.
While there’s much to celebrate and highlight in this rural community, there are some challenges. One of those challenges is affordable housing. While competitive hourly wages are offered by many employers, it is challenging to find quality homes for sale under $200,000. This is one of the factors of why nearly 45% of the residents are renters according to city officials. 
Another challenge is combatting an effective marketing campaign from South Dakata. With Marshall only 36 miles from the SD border (60 miles from Brookings, SD and 90 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 expanded to an international presence and currently occupies multiple sites in the Marshall community with office, warehouse, and manufacturing facilities. Despite the impressive growth, Ralco has remained true to its rooted principles of faith, family and doing what is right. This foundation, along with the focus of selling quality products and hiring an impressive research team created a new business line of animal supplements. The all-natural supplement growth for the company recently surpassed the feed ingredients as their lead product. 
When entering the Ralco office one couldn’t help but notice the intentional focus to each employee’s strengths. Each employee’s name placard listed their top five characteristics. This unique statement not only reminds the employee each day what their strengths are, but reminds co-workers how to approach each other for most effective collaboration.
One of the big takeaways from our Ralco visit was seeing how intentional the company is on strategically using individual strengths for specific roles within the company.
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 business we randomly visited. 
A couple of resounding themes were evident with 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 their own 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 4 of each of these businesses in town, the international community offers multiple options of cuisine to the community. Unfortunately, in recent weeks, a few of these businesses have noticed a decline in patrons due, in part, to federal administration policy change, 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 business doesn’t go as planned, and using employee’s strengths to advance 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.
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