The Andersons, Inc. (Nasdaq: ANDE) recently announced it has signed a long-term lease for its operations at Port Houston and will be expanding the facility to enable the export of soybean meal and other agricultural products. The Soy Transportation Coalition, comprised of fourteen state soybean boards, the American Soybean Association, and the United Soybean Board, is pleased to announce its collaboration with The Andersons on this investment by providing funding to be utilized for pre-engineering, design, analysis, and research costs associated with the project. A total of $275,000 in funding is being provided by the following soybean farmer organizations who participate in the Soy Transportation Coalition:
- United Soybean Board
- Soy Transportation Coalition
- Iowa Soybean Association
- Kansas Soybean Commission
- Missouri Soybean Merchandising Council
- Nebraska Soybean Board
“The farmer directors of the Soy Transportation Coalition appreciate The Andersons for this significant investment in the soybean industry,” says Mike Koehne, a soybean farmer from Greensburg, Indiana, and Chairman of the Soy Transportation Coalition. “This project addresses many of the priorities of soybean farmer leaders as we explore opportunities to remain profitable in the future. We are pleased to contribute funding toward the pre-engineering, design, analysis, and research costs to help move this project forward.”
With a current storage capacity of 6.3 million bushels, The Andersons export terminal at Port Houston supports the annual export of over two million metric tons of grain. Once completed, the expansion will result in 22,000 metric tons of storage capacity for soybean meal. The project has the potential of meaningfully addressing several major priorities of the soybean farmer community:
- The need to enhance the ability to export soybean meal. With all the current and expected investments in soybean processing infrastructure in the U.S. – largely for the purpose of producing soybean oil for the renewable fuels industry – it will continue to be imperative to invest in infrastructure to facilitate the export of soybean meal.
- Over the past several years, low water conditions on the Mississippi River have impeded the ability to transport soybeans via barge to export terminals near the Gulf of Mexico. While the Mississippi River will always remain a key link in the soybean supply chain, it is essential to increase the resilience of our transportation system by diversifying the supply chain. One of the axioms regarding supply chains is the importance of “spreading the eggs across more baskets.” The soybean meal that will be shipped to the facility at Port Houston will be transported via rail. It will not utilize the inland waterway system.
- While large “home run” markets like China remain of great importance to the soybean industry, it is imperative to pursue multiple “base hit” marketing opportunities for soybean meal and soybeans. Exporting soybean meal from The Andersons Houston terminal will create opportunities to reach additional markets, including the Middle East/Africa, the Caribbean, and Latin America.
“We sincerely appreciate the opportunity to work with soybean farmers on this important investment,” said Matt Dvorak, Houston Business Manager at The Andersons. “As domestic soybean crush increases, we are identifying new opportunities for the export of soybean meal via our Houston facility. We look forward to working with the Soy Transportation Coalition and the broader soybean farmer community on this project which will help connect U.S. soybean meal with international customers.”
“The farmer leaders of the Soy Transportation Coalition gravitated toward this project due to the potential for increasing marketing opportunities for soybean meal while simultaneously increasing the resiliency of our supply chain,” explains Mike Steenhoek, Executive Director of the Soy Transportation Coalition. “This is another example of soybean farmers making strategic investments in our supply chain, which will provide tangible benefit to the industry. It is a pleasure to work together with a forward-thinking company like The Andersons on such an important project.”
About The Andersons, Inc.
The Andersons, Inc., named in 2024 to Forbes list of America’s Most Successful Small Companies, Newsweek’s list of America’s Most Responsible Companies, and one of The Americas’ Fastest Growing Companies by the Financial Times, is a diversified company rooted in agriculture that conducts business in the commodity merchandising, renewables, and nutrient & industrial sectors. Guided by its Statement of Principles, The Andersons is committed to providing extraordinary service to its customers, helping its employees improve, supporting its communities, and increasing the value of the company. For more information, please visit www.andersonsinc.com.
