February 14, 2008

North Dakota cooperative to build US$200-million soy crushing plant

Ag Plus Cooperative, based in North Dakota, said it aims to build a US$130 million to US$200 million soy crushing plan in Red River Valley this year.

The proposed plant could crush 20 percent to 40 percent of all the soy grown in North Dakota. The plant would employ 44 to 60 people and should be operational by the summer of 2010, the group said.

Mark Ottis, president of Ag Plus Cooperative, disclosed that the cooperative  is seeking US$2,000 from each member before its self-imposed deadline on February 29.

Ottis explained the "seed money" will secure membership in the cooperative, one voting share, first right to purchase equity shares, a guaranteed purchase price and participation in all startup information.

The fund would be used for startup expenses, engineering, matching funds for future grants and a detailed business and marketing plan.

The proposed plant is estimated to crush soy annually to produce soymeal and 30 million to 60 million gallons of food-grade soy oil or biodiesel.

Majority of the soy grown in North Dakota are shipped to southeast Asia.

The plant will have the capacity to process 21 million to 42 million bushels of soy every year.

Last year, North Dakota produced around 105 million bushels of soy.