October 30, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

The increasing demand for renewable fuels, particularly biodiesel, has led to a boom in soybean crushing. Biodiesel and renewable diesel have gained significant momentum due to environmental concerns and the need to reduce greenhouse gas emissions. These fuels are derived from a variety of sources, with soybean oil being one of the most prominent and environmentally friendly options. 

This relationship is driven by a combination of factors, including environmental concerns, government regulations, market dynamics, sustainability considerations, technological advancements, and competition with other feedstocks. As the world continues to prioritize renewable energy with the goal of reducing carbon emissions, the relationship between renewable fuel demand and soybean crushing is likely to remain significant.

Earlier this month we shared how both Cargill and Bunge have executed recent deals connected to their soy crushing businesses. Today, Louis Dreyfus Company (LDC) is in the spotlight for its announcement outlining its plans to construct a $500 million soybean processing plant in Upper Sandusky, Ohio which will be an integrated crushing facility handling vegetable oil refining, lecithin production, and packaging. 

“This strategic development will further strengthen LDC’s core merchandising capabilities with additional capacity to originate and process U.S. soy into value-added products – in this case edible oils and lecithin, reinforcing our position as a partner to our customers as we grow our Food & Feed Solutions business established in January,” said Michael Gelchie, CEO, LDC.

There are approximately 26,000 soybean farmers in Ohio that collectively account for an economic impact from soybean production of $5.3 billion for the state of Ohio. LDC explained that it chose Upper Sandusky as a site for its expansion in recognition of it being a center for manufacturing, agribusiness, and farming, with a highly skilled workforce. 

“LDC’s substantial investment is a testament to Ohio’s economic vibrancy and our appeal to global agribusiness leaders,” said J.P. Nauseef, president and CEO, JobsOhio. “This collaborative effort brings 100 new jobs and cutting-edge technology that will serve as a magnet for future investment in this critical sector.”

LDC explained that construction at the site is expected to begin in early 2024, with the new facility employing more than 100 people and having an annual soy crushing capacity of 1.5 million metric tons; annual edible soybean oil production capacity of 320,000 tons; and annual lecithin production capacity of 7,500 metric tons. 

Gordon Russell, U.S. head of grains & oilseeds, LDC, commented, “Reflecting our long-term commitment to North America as a key market for LDC, both in terms of origination and distribution, this new facility will leverage LDC’s existing regional logistics network and synergies with our other integrated oilseed processing facilities in the region: our recently-expanded crushing, biodiesel refining, and glycerin and lecithin production complex in Claypool (IN), U.S., and our canola processing plant in Yorkton (SK), Canada, which we are also expanding.”

“Soybeans are Ohio’s top exported agriculture product, so we are very excited to welcome LDC to Upper Sandusky,” commented Mike DeWine, Governor of Ohio. “This new facility will not only bring in new jobs, but it will also lead to new avenues for growth and innovation in Ohio’s agricultural sector.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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