Industry

Crushing Business Expansion Provides Positive News for U.S. Soybean Farmers

The expansion of Perdue’s crushing business is good news for U.S. soybean farmers.

Perdue, known primarily for its chicken business, has diversified into many areas of the supply chain and retail. Perdue has a goal of being the most trusted name in premium proteins and raises animals to create products for consumers and retail and foodservice customers around the globe and is a leader in all-vegetarian-fed and no-antibiotics-ever chicken, turkey, and pork, as well as U.S. Department of Agriculture (USDA) – certified organic chickens; along with premium pet treats with no fillers or animal by-products. Perdue AgriBusiness is an independent operating company of Perdue Farms, Inc. Ranked among the largest grain companies in the U.S., Perdue AgriBusiness is a leading merchandiser, processor, and exporter of agricultural products. Through Perdue AgriBusiness’ 75 elevator locations with more than 75 million bushels of storage, deep-water port, transload facilities, oilseed crushing operations, edible oil refinery, and protein blend mills, the company serves markets across the U.S. and around the world.

Perdue AgriBusiness LLC recently announced it has acquired the assets of Hart AgStrong LLC (AgStrong). The purchase includes two oilseed expeller crushing facilities in Bowersville, Georgia. and Trenton, Kentucky, processing organic and non-GMO soybeans, HEAR (high erucic acid rapeseed), canola and high oleic sunflower, as well as an organic specialty oil refinery at the Bowersville facility. The facilities produce organic and non-GMO oils sold to food and industrial product manufacturers and meal for organic and non-GMO animal feeding operations in the southeastern U.S. The AgStrong asset purchase will allow the company to fully supply Perdue Foods’ cooking plants in Perry, Georgia. and Bridgewater, Virginia.

“The AgStrong facilities offer an ideal complement to Perdue AgriBusiness’ existing specialty crops and oils capabilities,” said Dick Willey, President of Perdue AgriBusiness. “We will be able to increase sales of our current and new specialty oils. AgStrong’s production capabilities coupled with Perdue AgriBusiness’ brand equity allows us to offer a vertically integrated supply chain with full traceability to our customers.”

Perdue AgriBusiness Specialty Crops and Oils is among the global leaders in the procurement and sale of verifiable, reliable organic and non-GMO grains and oilseeds, both domestically and internationally. The AgStrong assets will be incorporated into the existing Perdue AgriBusiness Specialty Crops and Oils business and the AgStrong management team and associates at all locations will transition to Perdue.

“We look forward to continuing to work with Kentucky and Georgia farmers and others in the Southeast with our ‘you grow it, we’ll buy it’ philosophy, and to supporting local and regional markets for high value crops,” Willey said.

The purchase will ensure the expeller crushing plants stay open. Aside from the specialty oil side of the business, the plants could help Perdue AgriBusiness secure the soybean meal required for its organic chicken business. The news of the facilities remaining open and continuing to provide a marketing outlet to the soybean farmers in Kentucky and Georgia is positive.

Alan Barrett
Alan Barrett

Director of Consulting

Farm Journal

Alan Barrett is Doane’s project consultant and accomplished commodity economist with more than 25 years of experience in futures and cash markets with a focus on cotton, commodity projects, non-traditional agricultural products, transportation and supply chain studies. Alan spent six years as a commodity futures broker. His expertise encompasses feasibility studies of oilseed crushing plants (soybean canola, and cottonseed), grain elevators, export elevators, shuttle elevators, grain container operations, flourmills and other processing facilities. Alan also has conducted transportation supply chain studies for grains, oilseeds, fertilizer, coal, natural gas, crude oil, and petroleum products. Alan has considerable experience in non-traditional agricultural products such as coal, coke, natural gas, chemicals, hydraulic fracturing fluid, hydraulic fracturing proppants, glycerin, fertilizer, micronutrients, salt, limestone, cement, iron ore, pig iron, and steel, especially feed ingredients. Mr. Barrett has a BS and MS in Agricultural Economics from the University of Tennessee.