ADM Plans $196 Million Expansion in Clinton, IA

The Archer-Daniels-Midland (ADM) grain processing plant in Clinton will undergo a $196 million modernization and expansion project to increase manufacturing capacity and help the century-old facility remain competitive.

The Chicago-based ADM is planning to update its Clinton wet mill, a facility built in the early 1900s that ADM acquired in 1982, according to documents from the Iowa Economic Development Authority, which approved incentives for the project Friday.

The project will include an investment of $146.5 million in new machinery and equipment as well as a new $39.1 million building expansion. It also includes $2.8 million in site preparation and $7.8 million in other machinery and equipment.

The economic development authority’s board approved $8.257 million in tax credits from its High Quality Jobs program. The project is expected to retain 42 jobs at a qualifying wage of $15.99 per hour.

“ADM is a proud member of the Clinton community, with operations spanning corn processing, grain origination and storage, and river transportation,” ADM spokeswoman Jackie Anderson said. “We are solidifying our presence in Clinton by investing to rebuild our 100-year-old Clinton wet mill.”

She said the mill is part of a corn processing complex that produces a wide range of products, including corn sweeteners and starches, beverage alcohol, corn oil, enzymes, ethanol, animal feed and other food ingredients.

The state assistance includes $7 million in an investment tax credit and $1.257 million in a sales, service and use tax refund.

State documents show ADM had considered closing the plant about 18 years ago because of its physical age and modernization needs. “The corn wet milling process begins at the mill as it separates the corn kernel into its four individual components. Without the mill, none of the other operating departments can operate,” the documents say.

“We appreciate the support of the State of Iowa and the City of Clinton, and we look forward to calling Clinton home of our newest, most modern corn wet mill,” Anderson said.

The plant employs more than 750 people, she added.

The city of Clinton has agreed to match the state award with a tax abatement, but the amount has not been determined.

Andy Sokolovich, the Clinton Regional Development Corp.’s existing industry manager, said the organization is “excited to support ADM” and thankful for the state’s partnership. “A wet-mill is the heart of their production process. As one of our largest employers, we are excited to share in their continued success,” he said.

Work on the modernization project is expected to begin in the first quarter of 2018 and be completed in the first quarter of 2022.

In a statement, Iowa Sen. Rita Hart, D-Wheatland, praised the investment by ADM. “This is good news for Clinton. ADM has been in Clinton since 1982. Modernizing and automating the Clinton facility will help the company remain competitive and, hopefully, add more good jobs down the road.”

Since 2003, ADM has received a total of about $19 million in state incentives for its operations in Clinton and Cedar Rapids. The projects created created a total of 181 jobs.

Advertisements

Register Now for the 86th Annual Oil Mill Operators Short Course, April 8-10, in Indianapolis, IN

Texas A&M University’s Process Engineering Research & Development Center and IOMSA are holding the 86th Annual Oil Mill Operators Short Course, April 8-10, 2018, at The Westin Indianapolis Hotel in Indianapolis, IN.

The one-and-a-half-day course will cover a wide variety of topics relevant to oilseed processing industry professionals.

According to Rich Clough, course organizer, “the goal of the short course is to present the tools and information needed to improve operations by increasing efficiency and optimizing human and plant assets.”

To view the entire schedule and register for the 86th Annual Oil Mill Operators Short Course, go to perdc.tamu.edu. The cost of the course is $150.

If you have any questions, contact Rich Clough (979-862-2262, rclough@tamu.edu) or Cyndi Casanova (979-845-2741, clcasanova@tamu.edu).

ADM Makes Takeover Approach to Bunge

Archer Daniels Midland Co. (ADM) has made a takeover approach to Bunge Ltd., according to people familiar with the matter, setting up a possible bidding war after Glencore PLC earlier made an overture to the agricultural powerhouse.

Details of the ADM approach are unclear and it’s possible neither company would succeed in buying Bunge, which had a market value of about $9.8 billion as of Friday afternoon. ADM’s valuation was $22.6 billion.

Mining conglomerate Glencore approached White Plains, N.Y.-based Bunge, which ranks among the world’s largest traders and processors of crops like soybeans and corn, The Wall Street Journal reported in May. The two companies have a standstill arrangement that temporarily prevents Glencore from making a hostile bid for Bunge. It’s unclear whether the expression of interest from ADM negates the standstill, which expires in coming weeks, and enables Glencore to make another move now.

ADM and Bunge represent the “A” and “B” in the so-called ABCDs, the global commodity-trading companies that dominate the world-wide flow of basic foodstuffs. Minnesota-based Cargill Inc. and Louis Dreyfus Commodities, headquartered in the Netherlands, are the other two.

A deal with Bunge would represent a strategic shift for Chicago-based ADM, which competes with Bunge in the business of buying, selling and processing crops. While ADM maintains one of the world’s largest agricultural trading networks, the company in recent years has prioritized investing in food ingredients and flavorings, which executives tout as more profitable and more stable than the sometimes-volatile grain industry.

A combination between ADM and Bunge would likely face stiff regulatory hurdles, given the companies’ competing grain facilities, shipping terminals and processing plants.

Glencore’s agricultural division has a smaller presence than ADM’s and Bunge’s in key crop-exporting bread baskets like the U.S. and Brazil, so a Glencore deal could face fewer such hurdles.

A deal could fortify the companies at a time when agricultural traders are struggling. A string of bumper crops in North America, South America and Eastern Europe have swelled stockpiles and pushed down agricultural commodity prices.

Ample supplies mean fewer and smaller price swings, making it harder for grain companies to make profitable trades. Low prices have also left farmers reluctant to sell crops to grain companies, with many instead choosing to stash away crops on their own farms and wait for prices to improve. And food companies that buy raw or semi-processed grain from commodity firms are placing fewer long-term orders, since prices are expected to remain low.

Bunge shares have given back their sharp gain after the Journal reported on Glencore’s approach, as a result of poor earnings.

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.