In David City, Nebraska, a significant milestone was reached with the grand opening of Ag Processing Inc.’s (AGP) newest soybean processing and degumming facility. This facility, which will process over 50 million bushels of soybeans and produce nearly 700 million pounds of degummed oil annually, marks a substantial addition to AGP’s existing operations. The ribbon-cutting ceremony on July 17 brought together cooperative members, state and local officials, and industry representatives, signaling the beginning of commercial operations expected to commence by the end of August.
The David City facility is poised to enhance AGP’s soybean processing and refining capabilities, reinforcing its position in both domestic and international markets. The location was chosen for its reliable soybean supply, skilled workforce, robust local infrastructure, and transportation access. Once fully operational, the plant will support over 80 full-time jobs, contributing to the local economy.
AGP’s decision to establish this facility underscores the cooperative’s mission to add value to members’ soybeans by processing them into meal and oil, selling these products in the open market, and returning earnings to local owners. Dean Thernes, board chairman of AGP, emphasized that the David City location aligns perfectly with this mission and will improve AGP’s competitiveness in global markets.
The site’s extensive infrastructure, including 2.5 miles of paved roads and nearly 13.6 miles of rail track, provides access to two Class I railroads. This infrastructure allows AGP to load a unit train of 110 cars every three to four days, ensuring efficient transportation of soybean meal and oil. Lou Rickers, chief operations officer of AGP, highlighted the facility’s capacity to handle multiple unit trains simultaneously, demonstrating AGP’s commitment to meeting customer needs with speed and efficiency.
Nebraska Governor Jim Pillen welcomed AGP to David City, emphasizing the state’s agricultural strengths and the positive impact of the new facility on soybean farmers and local employment. Pillen noted that the plant will consume over 15% of the state’s soybeans, improving local market conditions and increasing cash flow for producers. This investment in value-added agriculture is expected to strengthen Nebraska’s agricultural sector.
Chris Schaffer, chief executive officer of AGP, acknowledged the governor’s leadership and credited local support for the project’s success. He highlighted AGP’s comprehensive network of members, marketing and logistics systems, and experienced team, all of which are crucial for the facility’s operations and growth.
Headquartered in Omaha, Nebraska, AGP is a leading agribusiness with primary operations in soybean processing and refining. The company produces and markets soybean meal, refined soybean oil, and biodiesel, and engages in agricultural product trading in domestic and international markets. With 41 grain storage facilities and 95.6 million bushels of licensed grain storage capacity, AGP is a significant player in North America’s grain handling industry.
The implications for the agriculture sector are substantial. The new facility will enhance AGP’s processing capabilities, ensuring a steady supply of soybean meal and oil for both domestic and international markets. This expansion is expected to boost local economies by creating jobs and increasing demand for soybeans, thereby benefiting farmers and the broader agricultural community.
For investors, AGP’s strategic investment in the David City facility demonstrates its commitment to growth and competitiveness in the global soybean market. The facility’s advanced infrastructure and efficient operations are likely to enhance AGP’s market position and profitability. Additionally, the strong support from local and state authorities, along with the cooperative’s mission-driven approach, provides a solid foundation for long-term success.
In summary, the opening of AGP’s new soybean processing and degumming facility in David City represents a significant development for the agriculture sector and investors. The facility’s advanced capabilities, strategic location, and strong support from the community and state authorities position AGP for continued growth and success in the global soybean market.