With
biodiesel on tap, can soybean crush be far behind?
MADISON,
WI – April 8, 2006 – The growth of the biodiesel
industry in Wisconsin has sparked a resurgent effort from
the state’s soybean growers to gain local processing
for their product.
“Wisconsin farmers have good reason to applaud the
growth of the biodiesel industry in the state,”
says Bob Karls, Executive Director of the Wisconsin Soybean
Association.
He points to the North Prairie Productions’ 45 million
gallon per year biodiesel project slated for construction
in Evansville and other biodiesel projects in the state
as representing a substantial market for soy oil. The
commodity oil is essentially a by-product of soybean processing,
which is undertaken to convert soybeans into meal for
dairy, livestock and poultry producers. Karls expects
the growing local market for soy oil to increase the probability
that Wisconsin will someday soon have its own commercial
soybean processing facility.
“Wisconsin’s farm producers in virtually every
segment of our ag industry have historically been at a
disadvantage due to the absence of a commercial crush
(processing plant) in the state,” said Karls, who
was participating in the “Ag Day at The Capitol”
event in Madison that promotes farm issues to the state
legislature. “Presently, all our soybeans get transported
out of state at great distance. The meal is then transported
back to support our many dairy, livestock, and poultry
interests. This is not only inefficient, but the increasing
cost of transportation is having severe impact on our
farm producers’ ability to compete in their respective
markets.”
Despite the market disadvantage, Karls says that Wisconsin
production of soybeans has steadily increased in recent
years as farmers introduce soybeans into rotation as a
means of promoting good land stewardship while decreasing
their reliance upon chemical fertilizers and insecticides.
“Wisconsin now ranks 13th in the country in soybean
production, and we are the only state in the top 13 that
does not have commercial crush available for our growers.
As biodiesel production becomes more established, I expect
that will change and we will attract soybean crush to
the benefit of Wisconsin agriculture overall.”
A spokesperson for North Prairie Productions (NPP) says
that they are already engaged in trying to make commercial
soybean processing yet another “by-product”
of the state’s growing biodiesel industry. In choosing
Evansville as the site for a 45 million gallon per year
biodiesel plant, the company “actively sought to
create the circumstance where we could one day find ourselves
co-located with soybean crush” says NPP Vice President
Jeff Pieterick.
He claims the Evansville location is optimal to gather
soybeans from Wisconsin growers, and that Landmark Cooperative’s
adjacent rail and grain handling capability already provides
much of the infrastructure required to support such a
crush facility. “In our effort to secure supplies
of oil from which to make biodiesel, it is in our interest
to continue exploring every option to make crush happen
in Evansville.”
Landmark Services Cooperative has previously expressed
interest in pursuing the possibility of a crush plant
being located on their Evansville site as a means of developing
their property as a bioindustry hub. Although the NPP
business plan calls for them accessing their oil feedstock
by rail, the possibility of having crush next door “presents
opportunity to source our oil from across the street rather
than from across the country,” according to Pieterick.
“The resultant savings in transportation costs to
NPP would be of significant benefit, as would the ability
to establish a reliable and consistent source for our
soy oil feedstock.”
To Karls and the soybean growers, it’s all about
diversity in agriculture and improving the bottom line
for Wisconsin producers.
“Biodiesel production in Wisconsin is win/win for
the Wisconsin economy overall and for our farm producers
in particular as we move toward energy independence and
keep oil dollars circulating in our domestic economy.
Ultimately, however, I believe the biodiesel industry
will provide the catalyst that indeed finally attracts
crush to Wisconsin. When it happens, the state’s
admirable pursuit of alternative energy as a tool for
economic development will be shown to pay a substantial
and direct dividend to our ag economy for many years to
come.”
Additional information on the Wisconsin Soybean Programs
can be accessed at www.wisoybean.org.
Company information on North Prairie Productions, LLC,
and background on biodiesel is available on their website
at www.npnrg.com or
by calling toll-free at 877-299-2435.
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Notice Regarding Forward-Looking
Statements
This press release includes forward-looking statements.
All statements regarding North Prairie Products, LLC’s
expected operations, financing plans, business strategy,
budgets, projected capital expenditures, products and
services, competitive positions, growth opportunities,
plans and objectives of management for future operations,
as well as statements that include words such as “anticipate,”
“if,” “believe,” “plan,”
“estimate,” “expect,” “intend,”
“may,” “could,” “should,”
“will” and other similar expressions are forward-looking
statements. Please recognize that all forward-looking
statements involve a number of risks and uncertainties
that could cause our actual results to differ materially
from the estimates, expectations, beliefs, intentions,
projections and strategies reflected in or suggested by
the forward-looking statements. NPP disclaims any intention
or obligation to update any forward-looking statements
as a result of developments occurring after the date of
this press release.
