• Ron Kotrba

AGP to expand soy-crush capacity in Sergeant Bluff, Iowa

Photo: AGP

Omaha, Nebraska-based Ag Processing Inc. (AGP) announced plans Nov. 19 to make a significant investment in expanding the crush capacity of its soybean processing facility in Sergeant Bluff, Iowa. The site is home to one of the first U.S. biodiesel production facilities. Final construction decisions depend on negotiations with state and local officials on economic development, utility rates and services, and regulatory considerations, according to AGP.

The news follows a string of announcements this year by project developers and ag processors who are either building new, greenfield crush plants or expanding existing ones—some of which are in partnership with petroleum companies to feed their new renewable diesel facilities—including ADM/Marathon, Bunge/Chevron, Shell Rock Soy Processing/Phillips 66, Platinum Crush, CHS, Bartlett, and more.

“The project is aligned with our strategic plan of continued growth of our core soybean processing business to better serve the cooperative system and our rural communities,” said Lowell Wilson, AGP board chairman. “We would like to thank The Siouxland Initiative, Woodbury County and the Iowa Economic Development Authority for their support of this project.”

CEO Chris Schaffer added, “We have carefully evaluated this opportunity and are confident that this investment will generate strong returns for our membership and benefit farmer-producers throughout the region. Domestic and global demand for soybean meal and soybean oil continues to grow. In addition, we believe the expanded soybean processing plant will generate economic benefits for the Sergeant Bluff area.”

AGP is the largest cooperative soybean processor in the world owned by more than 150 local and regional cooperatives throughout the Midwest representing 200,000-plus farmers.

“The availability and quality of the soybeans in the Sergeant Bluff area make it an excellent location to expand our crush capacity,” said Mark Sandeen, chief marketing officer. “AGP continues to invest in areas that enhance our competitiveness. Our Sergeant Bluff facility has performed very well over the years and we have a strong connection to the community. We have a great team in place to support the expanded operations and we are excited to move forward with this project to return value to our members and their farmer-owners.”

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