AGP Plans to Erect New Soy Processing Plant

Cooperative Ag Processing Inc. (AGP) revealed plans Friday for a new plant near David City, NE that will add more than 50 million bu/yr of soybean processing capacity to the firm’s network.

“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,” said AGP chairman Lowell Wilson in a release. “Maintaining a strong cooperative system is vital to agricultural producers and our rural communities.”

A strong supply of soybeans in the area and the location’s proximity to rail lines drove the company’s decision to construct the new soybean processing plant in Nebraska. AGP’s asset will produce soybean oil and meal.

“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, WA,” said the co-op’s chief executive officer, Chris Schaeffer, in a statement. “AGP is currently considering investments that will significantly increase our export capabilities to meet the expected growth in domestic protein supply.”

About 60 jobs will be created with the opening of the facility. Operations are expected to commence at the new site in 2025.

AGP said last November that it is considering an investment to expand the crush capacity of its Sergeant Bluff, IA soybean processing plant.

Formed in 1983, AGP primarily focuses on soybean processing and refining and marketing soybean meal, biodiesel, and refined soybean oil.  The cooperative current has 10 soybean processing plants across Iowa, Missouri, Minnesota, South Dakota, Nebraska, and Iowa.