June 11, 2012
 
Northstar Agri becomes Minnesota's first rapeseed processing plant
 

The first operational rapeseed processing plant with integrated refinery in Minnesota is Northstar Agri Industries, a subsidiary of PICO Holdings Inc.
 
The plant is now fully operational having ramped production up to 80% of capacity, and is shipping final product (refined rapeseed oil and rapeseed meal) to customers.

 

The new plant has the capacity to process 1,000 tonnes of rapeseed per day, producing food grade refined rapeseed oil, a heart healthy vegetable oil with growing US demand and rapeseed meal, a high protein dairy cow and livestock feed ingredient.

 

Northstar Agri Industries is located outside of Hallock, Minnesota in Kittson County, 20 miles south of the Canadian border. The plant accepted its first rapeseed in January 2012 and continued to build its rapeseed inventory through March in preparation for the planned start up in May of this year. McGough Industrial Construction, LLC completed the plant construction three months ahead of the guaranteed completion date allowing for an early start for crushing operations.

 

"Having the plant ready to begin crushing is such a huge accomplishment for everyone who has been involved," said Neil Juhnke, Northstar President and COO. "I'm so incredibly proud of the work that's been done to bring this plant to Kittson County," adds Juhnke.

 

In recent years, North Dakota and Minnesota producers have planted between 0.8 and 1.2 million acres of rapeseed. This year, the planted acreage of rapeseed in North Dakota may exceed 1.4 million acres with another 40,000-50,000 acres in Minnesota. Canadian rapeseed acreage may set a new record this spring with plantings forecast to exceed 21 million acres. With the recent favourable weather conditions, growers have planted the crop earlier than expected. Growing conditions to date have been excellent, leading to an excellent start to this crop year.

 

Northstar is planning to operate the plant through mid-July 2012 with old crop rapeseed. The company will then schedule a short shutdown to inspect equipment and make any needed adjustments. Northstar plans to restart the plant in mid-August processing new crop rapeseed. The company is looking forward to a successful first year of operations, working with farmers and elevators in the region to provide a new market for rapeseed and produce high quality finished products for customers. Land O'Lakes Purina Feed LLC is under contract with Northstar to market both rapeseed oil and rapeseed meal.
 

A community wide grand opening event is planned for August 8, 2012. Local, state and national dignitaries are scheduled to speak and tours of the plant will be provided for the press and the general public.

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