OMAHA, NEBRASKA, USA – The Ag Processing Inc. (AGP) Board of Directors has approved a major expansion and upgrade to its export facility at the Port of Grays Harbor (POGH) in Aberdeen, Washington , United States.
As part of the expansion, AGP said it plans to upgrade its current facilities at Terminal 2, including building additional storage and adding a new ship loader to POGH’s Terminal 4. Terminal 2 and Terminal 4 are both deep water berths. with quick access to the open ocean, AGP said, and the planned expansion will allow AGP to load multiple vessels up to and including Panamax-sized vessels.
“With the expansion of U.S. soybean crushing capacity, driven by demand for renewable diesel feedstocks, U.S. soybean meal production will outpace historic increases in domestic use,” said Chris Schaffer, CEO of AGP. “AGP’s processing sites in the western United States are ideally suited to supply additional protein to growing markets in Southeast Asia and Asia. The United States currently supplies less than 20% of Southeast Asia’s overall soybean meal demand. Over the years, AGP has developed a very strong relationship with protein buyers in this region. This project will significantly improve speed, capacity and product availability for the benefit of current and future international customers.
Craig Pietig, vice president of agricultural products at AGP, noted that with time more valuable than ever, the upgrades and the new ship loader will improve the logistics of the company’s factories, increase production and reduce the vessel idle time.
“All of this will reduce costs for the end customer, ensuring that the Port of Grays Harbor remains a profitable port for exports of soybean meal and other processed products,” said Pietig. “In the past, exports have been reduced by soybean meal production capacities in the United States. Once announced expansions in the domestic soybean crushing industry become operational, there will be additional soybean meal to better meet growing international demand for protein. When this project is complete, our unloading capabilities will rival grain terminal speeds and the expanded facility will provide a necessary marketing channel for the anticipated increase in supply.
AGP said it expects operations at the port to begin in 2025, with final construction decisions and timing dependent on negotiations with federal, state, local and POGH officials regarding economic development incentives, terms and conditions. leases, infrastructure improvements and regulatory considerations.
“We are committed to working with port and government officials to develop and complete this important project to better serve our customers and also provide benefits to our cooperative members, their farmer owners and the surrounding community. “, said Schaffer.
The announcement comes less than two months after AGP unveiled plans to build a new soybean processing plant near David City, Nebraska, United States. The facility will have the capacity to process more than 50 million bushels of soybeans per year.
AGP, based in Omaha, Nebraska, USA, is the largest soybean processing cooperative in the world. It is owned by more than 150 local and regional cooperatives throughout the US Midwest, representing more than 200,000 farmers.