USA- Agribusiness cooperative CHS, headquartered in Minnesota, is looking to build a food-grade soybean oil and soybean meal production site near Evansville, Wisconsin to expand its soybean processing capabilities.
According to a statement by Patrick Mullooly, president of the Wisconsin Soybean Marketing Board, to Brownfield Ag News, the grain processor is early in the process of fulfilling this milestone and is working on air permits with the DNR and the state.
Mulloolly said the facility would process 70 million bushels annually and would possibly pull some soybeans from northern Illinois and Iowa, but the bulk would come from Wisconsin.
In 2022, Wisconsin’s soy production capacity was 160 million bushels and this new facility would possibly boost processing capacity by approximately 50%.
According to Doug Monson of the Wisconsin Soybean Program, if the new facility is built, farmers and the market are ready but there is a series of tasks that need to be done before the CHS board can make the final building decisions.
According to the company, CHS moves more than 2 billion bushels of grain annually and is also a major soybean processor and refiner, processing the equivalent of three million acres of soybeans every year.
CHS has 11 locations, including elevators, river terminals, and soybean processing plants.
Oilseed products drive growth in Q3 results
The move to expand soybean processing capacity is in line with the growth that the agribusiness giant has been experiencing in the recent past.
CHS Inc recently released its third-quarter financial results, revealing that strong demand for energy and oilseed products translated into solid earnings for the company.
The company’s Q3 results highlighted two main drivers of the company’s earnings although the company reported a lowered overall net income of US$547.5 million compared to a record third-quarter net income of US$576.6 million a year earlier.
According to the press release by the company, improved soybean and canola crush margins, driven by strong meal and oil demand resulted in higher earnings in the company’s oilseed processing business.
According to Precedence Research, the global oilseed market size was valued at US$256.36 billion in 2021 and could be worth around US$385.45 billion by 2030, making a CAGR of 4.64% during the forecast period from 2022 to 2030.
CHS has reaped the benefits of this market’s exponential growth and is likely to continue doing so in the foreseeable future.