Cargill to optimise soya bean crush operations in US

American agribusiness company Cargill plans to upgrade its soya bean crushing plant in Cedar Rapids, with an initial investment of $20m, while simultaneously closing another plant at Des Moines next month, as part of its strategy to optimise soya bean operations in Iowa, US.

Cargill also plans to invest a total of $60m in undertaking additional work at Cedar Rapids facility in the future.

According to the company, the decision to close the Des Moines plant has been taken after evaluating industry overcapacity in soyameal production.

Cargill stated that it will discontinue only the crushing operations, but will proceed with other business activities at the Des Moines site, such as the purchase of soya beans at its elevator, operation of its vegetable oil refinery, and production of specialty feed products.

Cargill Grain & Oilseed Supply Chain North America in Minneapolis president Mark Stonacek said the company can serve its Iowa farmers and its soya product customers more competitively through its Iowa locations in Sioux City, Iowa Falls, and its two facilities in Cedar Rapids.

Factors such as the reduction in domestic meat consumption, replacement of competing proteins such as dried distillers grain in feed, and surge in international oilseed processing have led to a difficult industry environment for soyameal, Stonacek said.

Following the closure, other Cargill facilities, including in Iowa Falls, Sioux City and Cedar Rapids, will supply the soya bean meal customers of Des Moines plant.

Cargill is an international producer and marketer of food, agricultural, financial and industrial products and services, and it has five business units: agriculture services; food ingredients and applications; origination and processing; risk management and finance; and industry.

Caption: Cargill has decided to close Des Moines plant after evaluating industry overcapacity in soyameal production. (Image courtesy of Cargill.)