Mid-Iowa Cooperative sells Shell Rock Soy Processing shares

Mid-Iowa Cooperative’s (MIC) board of directors has approved the sale of MIC’s shares in Shell Rock Soy Processing (SRSP), LLC.

MIC was recently presented with a significant offer for their ownership in SRSP. The offer validates the initial investment made two years ago to develop the soybean processing plant.

“Selling MIC’s shares was no easy decision,” said MIC Board President Ben Bader. “We thought long and hard on this. MIC’s board and leadership have spent significant time on this project and anticipated keeping MIC’s ownership long-term. When we were presented with a high rate of return on our initial investment, we knew we’d succeeded in creating a new market that will generate significant returns for our members long-term.”

Mid-Iowa Cooperative CEO Bruce Kempf supports the sale of MIC’s shares in SRSP.

“This will allow MIC to accelerate improvements to its current assets, create new end-user opportunities, and return equity back to members," said Kempf.

When the project was announced in October 2020, MIC was to own a portion of SRSP, which would have cost approximately $270 million.

Bader thanked former MIC CEO Mike Kinley for developing the idea of SRSP and spearheading the project. “Because of his efforts, producers will benefit for decades, and MIC’s balance sheet will be poised for future growth,” Bader said.

Kempf also appreciates how Kinley, who is now a strategic advisor for MIC, spent significant time and energy to develop the SRSP project in a way that MIC’s members would benefit for many years.

“A sale of this magnitude is proof of Mid-Iowa’s forward-thinking approach and ability to seek out varied opportunities to support our cooperative’s long-term position,” Kempf said.

SRSP crushing plant currently under construction

The new soy crushing plant is currently under construction by Minnesota-based Fagen, Inc. in Butler Logistics Park northwest of Shell Rock, Iowa.

When operational, the facility will crush 38.5 million bushels of soybeans annually, or 110,000 bushels daily. Each year, the facility is expected to produce 847,000 tons of soybean meal for livestock feed markets, 423 million pounds of crude soybean oil, and 77,000 tons of pelleted soybean hulls for livestock feed. The plant, which will operate 24/7, is expected to create 50 to 60 jobs in the local community.

The plant will provide high-quality feed ingredients to meet the growing domestic and global demand for protein, as well as renewable feedstocks for a low-carbon energy future.