January 4, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

While still in its relatively early stages, the emergence and growth in demand for plant-based foods continues to grow. Increasing consumer awareness about protein content in their diets, paired with a desire to limit animal-based proteins due to personal health and animal welfare concerns, has led to a surge in demand for soy-based protein ingredients. 

Between 2022-2029, the global soy protein market is projected to grow at a CAGR of 9.9 percent to reach a value of $14.1 billion, with volumes of nearly 7.7 billion tons over the same time period, according to the market research report Soy Protein Market by Type released in November 2022. 

This opportunity has not gone unrecognized.

In May 2021, Archer Daniels Midland (ADM) announced it was investing $350 million to build the first dedicated soybean crushing plant and refinery in North Dakota. 

Strategically located in Spiritwood, North Dakota – a major soybean producing region – the crushing and refining complex is expected to be online for the 2023 harvest and will include state-of-the-art automation technology supporting a processing capacity of 15,000 bushels of soybeans per day.

Expectations are that construction of the facility will be completed in time for the 2023 harvest, and that once operational, ADM’s global logistics network will enable the facility to access both domestic and global markets for soybean oil and meal.

Likewise, in early 2022, Bowdish Company announced it intended to invest $375 million to build a state-of-the-art soybean crushing plant near Norfolk, Nebraska, that will have the capacity to crush 38.5 million bushels of soybeans per year, or 110,000 bushels per day, and will be served by the Nebraska Central Railroad Company and the Union Pacific Railroad.

And within the same week, Ag Processing Inc. announced its plans to build an advanced soybean processing plant near David City, Nebraska, with an annual capacity to crush more than 50 million bushels of beans per year beginning in 2025.

More recently, in September 2021, sustainable food tech innovation company Benson Hill announced it had acquired a soybean crushing facility in Seymour, Indiana, from Rose Acre Farms to advance the commercialization of its proprietary ultra-high protein soybean varieties.

Then, this week, the company announced it was divesting its Fresh business to focus fully on its ingredients unit and the potential for soybean protein concentrate.

And Now Bunge

Which brings us to global agribusiness, food, and ingredients leader Bunge, which has recently announced its plan to invest $550 million to build a fully integrated soy protein concentrate (SPC) and textured soy protein concentrate (TSPC) facility with a capacity to process 4.5 million bushels of soybeans. 

Construction of the site, which will be adjacent to and integrated with Bunge’s soybean processing plant in Morristown, Indiana, is expected to begin in Q1 of this year. And once completed, expectations are that it will add significant scale and efficient non-GMO capability to Bunge’s existing U.S.-based conventional SPC and TSPC operation in Bellevue, Ohio.

“As the world’s largest oilseed processor, plant proteins are a natural extension of our industry leading oils, fats, and specialty ingredient portfolio,” said Greg Heckman, CEO, Bunge. “This new facility is an important step in our long-term strategy to strengthen our capabilities in downstream higher value food ingredients.”

In addition, Bunge also has recently invested another $10 million to boost its plant protein technical capabilities at its Creative Solutions Center in St. Louis. Now, along with its existing lipids and carbohydrates resources, the center offers commercial pilot plants for alternative meat and dairy, processed meat, and beverages that complement its bakery and fry labs. It also features a sensory testing facility, an extrusion lab, and a full-scale foodservice kitchen.

“Creating authentic meat and dairy experiences from plants requires specialized teams, high-quality ingredients, and strong innovation capabilities,” said Kaleb Belzer, vice president and general manager, protein ingredients, Bunge.

“At Bunge’s plant protein R&D facility, our experienced scientists and technical team test, develop, enhance and modify products alongside our customers so they can deliver food products with exceptional sensory, nutrition, and sustainability benefits to consumers around the world.”

~ 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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