ABERDEEN, Wash. – A group of soybean organizations have committed $900,000 to help offset some of the pre-engineering, design, and site development costs of a terminal in Washington state. The Port of Grays Harbor Terminal 4 Expansion and Redevelopment Project will help to expand soybean meal exports, the Soy Transportation Coalition announced Aug. 31.

“With more future soybean processing in this country, farmers are very interested in opportunities to assist with the increased need for soybean meal export capacity,” said Jonathan Miller, an Island, Ky., soybean farmer, who chairs the Soy Transportation Coalition, headquartered in Ankeny, Iowa.

Among the members of the group are: the Iowa Soybean Assoc., the Kansas Soybean Commission, the Nebraska Soybean Board, the North Dakota Soybean Council, the South Dakota Soybean Research and Promotion Council, and the Soy Transportation Coalition.

“The more we can export a higher value product, like soybean meal, farmers will benefit,” Miller said. “I am proud of how these soybean farmer organizations are demonstrating their commitment to their fellow producers by making this significant investment.”

On March 22, AG Processing, Inc., the Omaha, Neb.-based cooperative that owns and operates 10 Midwest soybean processing facilities, announced a major expansion and upgrade to its export terminal at the Port of Grays Harbor in Aberdeen, Wash. AGP plans to construct additional storage at its Terminal 2 facility, and develop a new ship loader at Terminal 4.

In 2003, AGP opened their soybean meal export terminal at the Port of Grays Harbor, and expanded the facility in 2012.

Mike Steenhoek, Soy Transportation Coalition executive director, said, “The recently-announced expansion will continue the dramatic growth of soybean meal exports.

“When AGP and the Port of Grays Harbor announced the planned expansion on March 22, I visited with the Soy Transportation Coalition board of directors, and reached out to a number of other soybean farmer organizations that might be interested in providing support for the project,” he said. “These discussions have been occurring over the past several months, and have resulted in yesterday’s (Aug. 31) announcement.”

According to the Soy Transportation Coalition, these investments – scheduled to be operational in 2025 – will ultimately allow the AGP terminal to increase soybean meal exports from 3 million to 6 million metric tons.

In order to accommodate this growth and investment, the Port of Grays Harbor will expand its rail infrastructure within the complex to efficiently handle the increased volume, as well as mitigate the surface traffic impact to the local community.

“Over the past 20 years, AGP has been an excellent partner, and we are excited to continue to collaborate with them on this major expansion,” said Gary Nelson, Port of Grays Harbor executive director. “We are extremely pleased and grateful to receive this generous support from soybean farmers.

“It will clearly enhance this project as it moves forward,” he added. “We look forward to the Port of Grays Harbor becoming an even more significant economic engine for not only our local and regional community, but also soybean farmers throughout the country.”

When asked how these Midwest soybean groups were selected, Steenhoek said those state soybean organizations that are participating in this project are among the states that produce a significant amount of soybeans that will ultimately be processed into soybean meal to be exported from the Port of Grays Harbor.

“In certain states, a sizable volume of soybeans produced will be processed at various AGP facilities located in the Midwest,” he said. “Much of the resulting soybean meal will, in turn, be transported to AGP’s terminal at the Port of Grays Harbor for export to Asian customers.

“This expansion project at the Port of Grays Harbor is recognized by these state soybean organizations as an opportunity to provide increased marketing of the soybean meal produced by their farmers,” he added. “As a result, they are enthusiastic about supporting it.”

Chris Schaffer, AGP CEO, said AGP’s previous and future investments at the Port of Grays Harbor are motivated by the commitment to provide efficient and economical access to international markets for U.S. soybean meal.

“For many years, this export terminal has served as a vital link between AGP farmer-owned cooperative members and critical international markets,” he said. “We very much appreciate the financial commitment from the soybean farmer organizations to support AGP’s efforts to enhance and upgrade the port’s export capabilities.”

Steenhoek said, “What happens over there impacts what happens over here, and what happens over here impacts what happens over there. It is well-established how investments in the Pacific Northwest will result in greater farmer profitability in the Midwest. In turn, profitable farmers in the Midwest result in increased investment in the Pacific Northwest.

“AGP’s expansion project at the Port of Grays Harbor is arguably the most immediate opportunity for soybean farmers to assist with the need for increased soybean meal export capacity,” he added. “The Soy Transportation Coalition and other farmer organizations are pleased to partner in this important project.”