OMAHA, NEB. — Ag Processing Inc. (AGP) announced Jan. 28 that it plans to build a new soybean processing plant near David City, Neb. The facility will have the capacity to process more than 50 million bus of soybeans per year.
Chris Schaffer, chief executive officer of AGP, said the soybean processing industry is experiencing tremendous growth, and a facility in east central Nebraska is well-positioned to generate solid returns on investment for the cooperative’s members.
“Domestic and global demand for soybean meal and soybean oil continues to grow,” Mr. Schaffer said. “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, Wash. AGP is currently considering investments that will significantly increase our export capabilities to meet the expected growth in domestic protein supply.”
Mark Sandeen, chief marketing officer of AGP, noted the facility’s location in the heart of US soybean production with access to major rail lines. The area is served by Class I railroads Union Pacific and BNSF, and the short-line Nebraska Central Railroad Co., a subsidiary of Rio Grande Pacific Corp.
“AGP continues to invest in areas that enhance our integrated business platform, and we are confident the David City facility will strengthen our market position and ability to compete well into the future,” Mr. Sandeen said.
AGP expects operations to begin in 2025. Company said that final construction decisions and timeline are contingent on negotiations with state and local officials regarding economic development incentives, required infrastructure improvements, utility services, and regulatory considerations.Based in Omaha, AGP is the largest cooperative soybean processor in the world. It is owned by more than 150 local and regional cooperatives throughout the Midwest, representing over 200,000 farmers.