Registration is Open for the 2018 IOMSA Convention | March 25-27 | Denver, CO

The 2018 IOMSA Convention will be held March 25-27 at the Embassy Suites Downtown Denver, CO.

The convention will be co-located with the Grain Elevator and Processing Society’s (GEAPS) Exchange 2018. While the two events are separate, they are located in adjacent buildings and are running simultaneously.

IOMSA is in no way merging with GEAPS.

Co-location provides IOMSA Convention attendees the opportunity to attend the GEAPS Exchange Expo on Sunday, March 25. A special rate will be offered to IOMSA Convention attendees who would like to visit the GEAPS Exchange Expo.

For more information about GEAPS Exchange, go to www.geaps.com/exchange-expo.

For more information on the 2018 IOMSA Convention, look for future issues of Oil Mill Gazetteer and check www.iomsa.org regularly.

To view the convention schedule, click here.

To register for the 2018 IOMSA Convention, click here.

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High Oleic Soybeans Cross Final Regulatory Hurdle

High oleic soybeans have crossed their final regulatory hurdle, clearing the way for farmers to plant more acres of high oleic soybeans in 2018.

“Achieving high oleic global regulatory approval enables us to meet end-user needs with a product they want and increase the use of U.S. soybean oil,” says Lewis Bainbridge, United Soybean Board chair and farmer from Ethan, South Dakota. “We encourage farmers to talk with their seed representatives about high oleic soybean variety options for 2018 planting to help keep pace with growing demand for this high-functioning oil.”

The soy checkoff has invested in research to ensure that high oleic soybeans deliver the qualities required by oil end users. These varieties produce a more stable oil for food industry use in restaurants and packaged goods. The oil also expands uses for non-food applications, such as synthetic motor oil and automotive lubricants.

For farmers, checkoff-supported research has helped ensure that high oleic soybeans perform the same as other soybean varieties and that variety development expanded to a wider range of maturity groups.

“For high oleic soybeans to be successful, we can’t sacrifice performance in the field or limit the geographies where they are grown,” says Bainbridge. “Farmers who plant high oleic soybean varieties consistently report that their high oleic varieties yield as well or better than their other soybean varieties.”

In order for end users to convert to high oleic soybean oil, they need a reliable, consistent supply. The checkoff has been working with industry partners to ramp up acreage of high oleic soybean varieties to meet growing demand. High oleic soybean varieties were initially grown in three states and are now grown in 13 states. Acreage of high oleic soybean varieties has grown from 50,000 acres in 2013 to more than 625,000 acres in 2017.

Given this regulatory milestone, its proven performance and anticipated continued growth in market demand, high oleic soybeans are expected to become the fourth-largest grain and oilseed crop in the U.S., with a goal of planting 18 million acres of high oleic soybeans.

Crush Plant Manager/Superintendent Position Available

Established canola and flaxseed processing business is seeking an experienced oilseed crushing/refining individual to manage a new state of the art full press crush plant and refinery in Great Falls, Montana.  This position seeks a candidate for immediate hire for a plant scheduled for completion in the late summer of 2018. This position will have considerable support from an experienced executive and management team.

Roles and Responsibilities

  • Observe construction of new facility and learn operation from the ground up to commissioning
  • Staff and manage plant
  • Safety and training of staff
  • Overall operations responsibilities
  • Compliance related to the processing plant
  • Ensure optimal operation of the facility
  • Quality control

 

Qualifications

  • Bachelor’s degree with plant operations
  • Five years in managerial role
  • Five years in a vegetable oil processing plant

Compensation

  • Competitive according to experience
  • Excellent Benefits Package

Contact

Steve Chambers @ sdchambers@mtspecialtymills.com

Please include a resume and any other pertinent candidate information.

DuPont Pioneer, Perdue AgriBusiness Announce Soybean Program Expansion

DuPont Pioneer and Perdue AgriBusiness recently announced that, in 2018, more farmers will be able to produce Pioneer brand Plenish high-oleic soybeans under contract and be eligible for a grain premium. Participating growers will be able to deliver grain to a participating elevator or directly to designated Perdue facilities for processing.

“Thanks to an expanding market for this improved soybean oil, Perdue is offering more contracted production acres for 2018,” said Gary Cordier, vice president of domestic soy sales for Perdue. “Plenish high-oleic soybeans offer the right combination of higher yield and profit potential for growers and more healthful, functionally superior oil for our food industry.”

Soybean growers who contract to grow Pioneer brand Plenish high-oleic soybeans in the 2018 growing season will receive a 50 cents/bu. incentive for producing and storing the beans or a 40 cents/bu. premium for a harvest delivery contract.

“Since we started working with Perdue in 2013, grower interest in Pioneer brand Plenish high-oleic soybeans has been exceptional,” DuPont Pioneer area lead Cynthia Ericson said. “The varieties we offer for contracting provide the defensive characteristics and high yield potential that area growers need to significantly improve income per acre.”

The development and commercialization of Plenish soybeans illustrates how biotechnology can provide direct benefits to the food industry, consumers and growers, the companies said.

Plenish high-oleic soybean oil provides companies and foodservice operators with a sustainable, U.S.-grown, soy-based trans-fat alternative with 0 g of trans fat per serving and 20% less saturated fat than commodity soybean oil. The improved fatty acid profile provides the highest oxidative stability level of any commercially produced soybean oil. Additionally, the enhanced stability means longer fry life in restaurant applications and less polymerized oil buildup on equipment, which reduces cleaning costs.

The oil’s stability extends the shelf life for packaged food products without sacrificing flavor and eliminates the need for artificial preservatives, creating the opportunity for a cleaner ingredient label.

The exceptional stability of Plenish oil also allows it to be utilized by the chemical industry as a renewable, environmentally friendly alternative to petroleum-based products, the announcement said.

Pioneer brand Plenish high-oleic soybean varieties are being developed with genetics using Pioneer’s Accelerated Yield Technology (AYT) 4.0. Local testing over multiple years has confirmed that yields are on par with similar elite commercial soybean varieties, the company said.

Traits included in Plenish high-oleic soybean products have received regulatory approvals in nearly all key U.S. soybean export markets, and approvals are pending in remaining export markets.

CHS Closes Sioux City Soy Plant, Lays Off 63 Workers

CHS Inc. on Monday closed its soy protein plant in South Sioux City, IA eliminating 63 jobs. The Minnesota-based farmers cooperative hinted the plant could reopen under new a owner early next year.

In a news release, CHS said the closure was part of its strategic plan to help restore financial flexibility by “reviewing all company assets to determine which are a strategic fit for CHS now and into the future.”

“CHS continues to negotiate the sale of the South Sioux City, Nebraska, facility to a Fortune 500 food company,” the news release said. “If the parties can reach a deal, we anticipate that CHS will finalize the potential facility sale in January 2018.”

 CHS employees displaced by the closing will be eligible for undisclosed severance pay and separation benefits.

CHS acquired the the South Sioux City plant for $133 million in 2012 from Israeli-based Solbar Industries.

“We are sad to see any thriving business leave South Sioux City or anywhere else in (the) Siouxland area,” said Rod Koch, mayor of South Sioux City. “We are going to miss the 63 jobs; however, we think the economy in the city is very vibrant right now and we’re hopeful those jobs will be replaced in short order with new industries that we are working on to come to South Sioux City and Siouxland.”

 Koch also wished CHS luck in its future endeavors.

The 195,000-square-foot plant in the Roth Industrial Park opened in 2008 under the Green Planet Farms name. A group of northeast Nebraska investors built the facility at a cost of $40 million. Specializing in organic soy processing, the company struggled to develop markets and failed to turn a profit in the face of a national economic downturn, forcing the owners to shut down production and put the plant and equipment up for sale in 2011.

Solbar, one of the world’s largest producers of specialty soy proteins, reopened it as a crush plant that turned soy flour into an isolate used in nutrition bars, sports drinks and vegetarian foods.

Researchers Discover New Use for Soybean Oil

Soybean growers may be excited to learn that University of Guelph researchers have recently found a new use for the oil from a specialty soybean variety.

The variety, OAC 13-55C-HL, is high in linoleic fatty acids, which work well in the production of industrial materials such as paints, coatings and epoxies, according to today’s Oilseed Innovation Partners (OIP) release.

The oil from this soybean “has a fatty acid profile that is approximately 33% higher in linoleic acid than commodity soybean oil,” the release stated.

Through this discovery, producers could see new market opportunities for their oilseeds.

“Recent studies point to a possible 16% market share for the oil and that will require an estimated 60,000 acres of identity preserved soybeans,” Rob Roe, director of bioproduct commercialization with OIP, said in the release.

“These soybeans would be grown under contract and the growers would receive a premium,” Roe told Farms.com.

The specialty oil was tested against the oils of other feedstocks, including commodity soybean oil, linoleic sunflower oil and linseed oil, the release stated.

The results from the first trial were promising, as the resin made from the new soybean oil showed performance characteristics superior to those made from the other oils, Roe said.

Researchers and industry partners (OPC Polymers and The Material Solution) have began the performance testing phase.

Dr. Gary Ablett, a soybean breeder at the University of Guelph, developed the variety two decades ago. Before passing away in 2012, he shared the research with Dr. Istvan Rajcan, another soybean researcher at the university, who continued the work with graduate students.

Soybean oil refining and bottling to be launched in Blagoveshchensk, Russia

A plant for refining and bottling of soybean oil will be built in the city of Blagoveshchensk, Amur region. The presentation of the plant, which is projected to release 50 MMT of the product a day, will be held on December 20, the press service of LLC ANK-Holding reports.

The facility is to produce soybean oil under a new brand named “Pearl of Amur”. Its annual production capacity is estimated at 15 KMT of soybean oil that is equivalent to 15 Ml one-liter bottles, reports UkrAgroConsult.

An oil extraction plant releasing soybean oil and meal (concentrated feed for animals) operates in the region since 2014. Its construction cost RUB 250 Ml. The facility currently produces 200 MT of products a day, processing up to 70 KMT of soybeans a year. Its output includes some 10 KMT of oil and 50 KMT of meal from non-GMO raw material. The extractor uses modern automated equipment. Also, it has an own laboratory and spacious production storage facilities with a system of well-thought-out technical processes and logistics.

ADM Reaches Agreement to Sell Bolivian Oilseeds Operations

Archer Daniels Midland Company (NYSE: ADM) announced today that it has reached an agreement to sell its oilseeds operations in Bolivia to Inversiones Piuranas S.A. The sale encompasses ADM’s processing facility in Santa Cruz de la Sierra, as well as nine grain silos and ADM’s Bolivian distribution business.

“We regularly review our portfolio, and the sale of our Bolivian Oilseeds operations is part of our long-term growth and transformation strategy,” said Greg Morris, president of ADM’s Oilseeds Processing business unit.

ADM’s oilseeds operations in Bolivia process soybeans and sunflower into oils and protein meal. ADM has approximately 400 employees in Bolivia.

The transaction, which is subject to regulatory approvals, is expected to close in the first half of 2018; until then, ADM will continue to operate its oilseeds business in Bolivia.

Forward-Looking Statements

Some of the above statements constitute forward-looking statements. ADM’s filings with the SEC provide detailed information on such statements and risks, and should be consulted along with this release. To the extent permitted under applicable law, ADM assumes no obligation to update any forward-looking statements.

U.S. Soy Processors Build New Capacity at Fastest Rate in 20 Years

U.S. agricultural cooperatives are building new soybean crushing plants at the fastest rate in two decades as farmers in the world’s top producer prepare to sow another record area with soy.

 The growth worldwide in the number of consumers with income to spend on pork and chicken has led to a rapid rise in demand for food to raise animals. Crushing plants produce high-protein soymeal feed for livestock and soyoil for food and fuel.U.S. processors are expected to open plants with capacity to process at least 120 million bushels of soybeans in 2019, up around 5 percent from existing capacity of an estimated 1.9 billion bushels.

The last time outright capacity grew that much was in 1997-98, according to U.S. Department of Agriculture and soy industry data.

Strong demand for feed has boosted crushing margins, the measure of profitability for the plants. Margins stand at more than a $1 per bushel, the strongest for 18 months, according to the CME Group.

The margins have encouraged processors to build more plants.

“Margins on soybean processing were very good, some of the best we’ve had in many years. And when the industry has good margins, you expand production,” said Mark Sandeen, vice president of product marketing at farmer cooperative Ag Processing Inc (AGP).

Growth in feed demand means crushing capacity worldwide will need to expand further.

Global soy production would have to increase by 20 percent over the next decade to keep up with feed consumption, said Tom Hammer, president of industry group National Oilseed Processing Association.

U.S. soy plantings totaled a record 90.2 million acres this year and the USDA in a preliminary forecast set plantings next year at 91.0 million acres. And while industry capacity could reach 2 billion bushels in under two years, the USDA said crushings likely will not reach that level until 2020-21.

AGP broke ground earlier this year on a new soy plant in Aberdeen, South Dakota, that will have annual capacity to process 40 million bushels.

Another cooperative, North Dakota Soybean Processors, planned to build a similarly sized facility for an estimated $287 million near the town of Spiritwood.

The plants will increase demand for local soybeans, potentially pushing up prices that farmers nearby will receive for their crops, and reducing transport costs.

Ryan Wagner, who grows soybeans about 50 miles away from the new soy plant in South Dakota, said the processor could add 10 to 15 cents to the local soybean price – an amount that might mean the difference between making or losing money.

Chicago Board of Trade soybean futures on Friday were $9.89-3/4 per bushel, down 2-1/4 cents.

“That basis will be nice but in the long run I think the greater economic impact will be the attraction of more opportunities for raising livestock because of the new supply of soybean meal,” Wagner said.

“We are already starting to see interest in our area for more pork and poultry production since the announcement.”

Family-owned Zeeland Farm Services plans to build the second plant in the state of Michigan with capacity of 40 million bushels, to open in 2019. The company built Michigan’s first soybean processor in 1996 in Zeeland.

The company will supply soybean meal to hog, turkey, dairy and aquaculture farms in Michigan and export both soymeal and soyoil, said Cliff Meeuwsen, president of Zeeland.

Due to a lack of processing plants in Michigan, much of the soybeans there are shipped to Ohio where merchant giants Archer Daniels Midland Co, Bunge Ltd and Cargill Inc [CARG.UL] have plants.

Soymeal then gets shipped back to Michigan to feed animals, raising costs.

 “We hope to cut those costs out, thereby raising the price of soybeans to producers and cutting the cost of feed and protein to livestock producers,” Zeeland’s Meeuwsen said.

Earlier this year Perdue Farms opened a processor with capacity for 17.5 million bushels in Pennsylvania, that state’s first large-scale soy crushing plant.

Many of the new facilities are in places outside the central U.S. Midwest soy belt, taking advantage of increased supplies from farmers in those areas that have switched to soybeans from less profitable crops such as wheat.

Grain handlers will increase their profits by building the plants, as the margins are bigger for crushing than they are for simply buying and shipping soybeans, said Mike Steenhoek, executive director of the Soybean Transportation Coalition.

“The old adage is it’s better to export meat than (soy) meal and better to export meal than soybeans. You are always trying to export that higher-value product,” Steenhoek said.

American Soybean Association Board Elects John Heisdorffer as President

John Heisdorffer of Keota, Iowa, will serve as the 2018 president of the American Soybean Association, following a vote of the ASA board this morning in St. Louis.

Heisdorffer raises soybeans, corn and hogs with his wife, Deanna and son Chris.

“There is a so much facing the soybean industry today, and I am very aware of the responsibility that this position carries with it.

“For the first time in history, American farmers harvested more acres of soybeans than any other crop.

“We are a leading voice in the ongoing dialogue on food and farming, and as a leader, it’s our duty to stay engaged and stay passionate on the issues that affect soybean farmers every day.

“Whether that’s trade or biotechnology or regulation, there is plenty to be done. I am excited to get to work, and I look forward to leading this wonderful organization in the coming year.”

Heisdorffer replaces Illinois’ Ron Moore as president, and Moore will move to the role of ASA Chairman.

Former Chairman Richard Wilkins of Delaware rotates off the nine-member ASA Governing Committee.

The ASA Board also elected Davie Stephens to serve as Vice President, a position that places him in line to serve as the association’s president in 2019.

Stephens lives in Clinton, Ky., and farms in Kentucky and Tennessee with his wife Judy and his father, raising soybeans, corn and poultry.

In addition to Heisdorffer, Moore and Stephens, the ASA board voted to elect Kevin Scott of South Dakota as Secretary; Bill Gordon of Minnesota for a second term as Treasurer; and Bret Davis of Ohio, Eric Maupin of Tennessee, Joe Steinkamp of Indiana, and Charles Atkinson of Kansas as at-large Governing Committee members.

New members beginning their nine-year terms on the ASA board are Dennis Fujan of Nebraska; Josh Gackle of North Dakota; Jered Hooker of Illinois; Ryan Kirby of Louisiana; Alan Meadows of Tennessee; Scott Metzger of Ohio; Nick Moody of Virginia; Scott Persall of Canada; Caleb Ragland of Kentucky; Ronnie Russell of Missouri; and Brandon Wipf of South Dakota.

The new ASA Directors replace retiring directors Ed Erickson, Jr., of North Dakota; Bruce Hall of Virginia; Mark Huston of Canada; Jim Miller of Nebraska; Dave Poppens of South Dakota; Jeff Sollars of Ohio and Lawrence Sukalski of Minnesota.

CHS Closes Plants in Kansas, Iowa, and Minnesota

A soy processing plant in Hutchinson has closed, costing 77 people their jobs.

CHS Inc. announced Friday that the Hutchinson plant was one of three it was closing as it moves out of soybean protein production.

The others were in Creston, Iowa, and its Innovation and Technology Center at Eagan, Minnesota. Spokeswoman Annette Degnan says a total of 144 employees at the three locations will be affected.

The Hutchinson News reports eligible employees will be paid through Jan. 30 and will be eligible for severance pay and outplacement assistance.

The company reported net income of $127.9 million for the fiscal year ended Aug. 31, compared to net income of $424.2 million for fiscal 2016.