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  • Ron Kotrba

AGP to build new soy-crush plant in Nebraska

Ag Processing Inc. (AGP) announced Jan. 28 its plan to build a new state-of-the-art soybean processing plant near David City, Nebraska. The facility will have the capacity to process more than 50 million bushels of soybeans per year. The company plans operations to begin in 2025.

“The soybean processing industry is experiencing tremendous growth and we believe a facility in east-central Nebraska is strategically located to serve our cooperative members and their farmer-owners,” said AGP Chairman Lowell Wilson.

Chris Schaffer, CEO of AGP, added, “Domestic and global demand for soybean meal and soybean oil continues to grow. The David City location will also improve the company’s ability to market soybean meal to the Pacific Rim through AGP’s export terminal in Aberdeen, Washington. AGP is currently considering investments that will significantly increase our export capabilities to meet the expected growth in domestic protein supply.”

The availability and quality of soybeans in the area, as well as access to major rail lines, make David City prime location for the plant, said Mark Sandeen, AGP’s chief marketing officer. “When completed, the David City facility will provide a significant market opportunity for soybean growers in the region through AGP’s cooperative owners. … [W]e are confident the David City facility will strengthen our market position and ability to compete well into the future.”

Final construction decisions and timelines depend on negotiations with state and local officials regarding economic development incentives, required infrastructure improvements, utility services, and regulatory considerations, company officials noted.

In November, the company unveiled plans to expand crush capacity at its soybean-processing plant in Sergeant Bluff, Iowa.

Omaha, Nebraska-based AGP is a major U.S. soybean processor producing and marketing soybean meal, refined soybean oil, and biodiesel. It is owned by local and regional cooperatives representing farmer-producers across the U.S.

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