AGP to build a soybean processing facility in the US
Wednesday, February 2, 2022
US agribusiness, Ag Processing Inc. (AGP) plans to build a new state-of-the-art soybean processing plant near David City, Nebraska. The facility will have the capacity to process over 50 million bushels of soybeans per year. AGP’s Chairman of the Board, Lowell Wilson, said that “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. Maintaining a strong cooperative system is vital to agricultural producers and our rural communities.”
“We have carefully evaluated this opportunity and are confident this investment will generate solid returns for our membership and benefit producers throughout the region,” stated Chris Schaffer, AGP’s chief executive officer. “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.”
Chief marketing officer, Mark Sandeen, added that “the availability and quality of soybeans in the area and access to major rail lines make David City an excellent location for the plant. When completed, the David City facility will provide a significant market opportunity for soybean growers in the region through AGP’s cooperative owners. The project is expected to create over 60 well-paying jobs. 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.”
AGP expects operations to begin in 2025. Company officials noted 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. “We are committed to working with local and state officials to develop and invest in sustainable projects to better serve our customers while also benefiting our members, their farmer owners, and the surrounding communities,” said Schaffer.
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