Could More Soybean Processing Plants Spell Cheaper Feed for Dairy Farmers?

“The soybean processing industry is entering a new era driven by the demand for low-carbon fuels like renewable diesel, which can be made with tallow, recaptured vegetable oil, canola oil, and of course, soybean oil. This push for more sustainable fuel is helping drive the rapid expansion of new soybean crushing facilities across the U.S.

According to the American Soybean Association (ASA), 23 soybean processing plant expansions and new builds have been announced, adding nearly 750 million bushels per year in crush capacity. Many of the crush plant announcements are being driven by the growth in renewable diesel. Of the 23 crush plant announcements, 13 are for new plants and 10 are for expansion of current plants, at least two of which have been completed. If projections are on target, the extra demand for soybeans could push prices an estimated 13% higher in the coming years.”

Read the full article by Taylor Leach with Dairy Herd Management