South Dakota to see new soy and sunflower processing plant

By Jane Byrne

- Last updated on GMT

© GettyImages/DS70
© GettyImages/DS70

Related tags South Dakota crushing sunflower Soy processing plant

South Dakota Soybean Processors LLC (SDSP) is to construct a multi-seed processing plant near Mitchell, South Dakota, in the US. The facility is pegged to come on stream in 2025.

The plant will have the capacity to process 35 million bushels of soybeans annually, or the equivalent 1 million tons of higher-oil crops.

With processing facilities in Volga and Miller, the Mitchell site would be the first expansion toward the west-central side of the state for SDSP.

The increasing demand for vegetable oil is driving the expansion of soybean processing in the US, noted Tom Kersting, chief executive of that organization.

“A plant with the ability to also process crops such as sunflowers—which can produce twice as much oil per acre than soybeans—significantly reduces the risk of the project and puts the plant in a much better position for long-term success.”

The Mitchell site, said the CEO, provides a unique set of advantages over other locations.

“In addition to being near an abundant supply of soybeans, the plant’s western location is tributary to the western side of the state, an area well-suited for the production of crops such as sunflowers and camelina.

“It is notable, too, that the Mitchell area is experiencing significant growth in hog and dairy production, and these factors will help provide an increasing demand for soybean and sunflower meal. Further, the plant will be located on BNSF railway, and as SDSP has already established a strong relationship with them, we are looking forward to a partnership on this project.”

SDSP said negotiations with state and local officials to finalize the project are ongoing. 

North Dakota soy crushing plant

The development follows the announcement in December 2021 of the plan by CGB Enterprises and Minnesota Soybean Processors to set up a new joint venture with the aim of building a soybean processing plant near Casselton, North Dakota, which is not too far from the Canadian-US border.

The partners would jointly operate that facility, which is anticipated to be up and running in 2024, as North Dakota Soybean Processors, LLC. It is expected to crush 42.5 million bushels of soybeans in its first year.

Related topics Markets

Related news

Show more