Mar 31, 2022

Landus, AMVC Partner on New Feed Mill Project

Facility will produce up to 400,000 tons of swine feed per year

Farmer-owned cooperative Landus and pork producer AMVC will collaborate to build a new feed mill at the existing Landus grain facility located in Hamlin, Iowa.

The proposed feed mill will produce up to 400,000 tons of swine feed per year. It will generate demand for roughly 8.5 million bushels of corn and 48,000 tons of soybean meal annually.

Corn demand will exceed capacity of the existing Landus grain storage in Hamlin, allowing Landus the opportunity to leverage its nearby grain assets, including a site in Panora, Iowa, which was recently acquired through an asset swap with Heartland Co-op, to supply corn to the new mill.

Through this partnership, AMVC will own and operate the feed mill. Landus will be responsible for originating grain for the project through its network of local farmer-owners.

Matt Carstens, president and CEO of Landus, says this partnership introduces a new collaborative model to the local feed landscape.

By working together from the start, Landus and AMVC have developed an optimized approach that allows each party to focus on its strengths while better meeting the unique needs of differing stakeholders.

"This improved model gives AMVC better control of their long-term biosecurity and traceability requirements," says Carstens. "While Landus can focus on sourcing and delivering quality grain from our farmer-owners.

"By working together, we can both responsibly invest where it makes the most sense," he continues. "For Landus, that means using farmer-owner money in the most effective way possible."

Dr. Steve Schmitz, veterinarian and managing partner at AMVC, agrees the collaboration will enhance the company's rural economies.

"Landus will provide AMVC the expertise to source and deliver quality grain from local farmers, allowing us to better leverage our strengths of professionally raising and feeding pigs," says Schmitz.

"The establishment of this feed mill will maintain and increase long-term agriculture value for crop producers and pork producer stakeholders within Audubon County," he continues. "This partnership also adds to the overall economic growth of the community by creating short and long-term employment opportunities."

Once fully operational, the mill will employ up to eight full-time personnel and generate demand for an additional 14 local truck drivers.

AMVC currently anticipates project completion by summer 2024.

Lisa Cleaver

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Marketwatch: Feb, 01

US Corn Price Idx: ZCPAUS.CM

open: 6.8325
high: 6.8875
low: 6.7808
close: 6.8028

US Soybean Price Idx: ZSPAUS.CM

open: 14.9025
high: 15.0323
low: 14.8598
close: 14.969

US Hard Red Winter Wheat Price Idx: KEPAUS.CM

open: 8.2642
high: 8.4037
low: 8.2167
close: 8.374

US Soft Red Winter Wheat Price Idx: ZWPAUS.CM

open: 6.8955
high: 7.0355
low: 6.8905
close: 7.0099