ADM closes its Galesburg, Illinois, soybean processing plant Aug. 22, as growing export market, rising bean cost, declining domestic demand crimp profits, company says
August 23, 2011
– Archer Daniels Midland Co. closed its Galesburg, Illinois, soybean processing plant Aug. 22, cutting 31 jobs, as the growing soybean export market, rising cost of beans and declining domestic demand cut into the plant’s profitability, Reuters reported Aug. 23.
The Galesburg plant has been inactive since April, said ADM spokesman Roman Blahoski, Reuters reported. The operations from the Galesburg will be taken on by processing plants in Quincy and Decatur, Illinois; Des Moines, Iowa; and Mankato, Minnesota. Some of the plant’s 31 employees will have the option to work at other ADM facilities.
Domestic and international demand for soybean meal used in animal feed has been slowing, cutting into the profit margins of soy processors. Crush BXCc1 is trading on the Chicago Board of Trade at its lowest level in at least five years.
In recent years export demand for soybeans has grown, and the U.S. Department of Agriculture estimates that nearly 45% of soybeans produced in the U.S. will go to importers in the new marketing year beginning Oct. 1.
The primary source of this article is Reuters, London, England, on August 23, 2011.