Project is a response to a rapidly growing livestock industry in northwestern Iowa and increased milling capacity needs
The Cooperative Farmers Elevator (CFE) in Iowa will begin construction on a new feed mill in Ocheyedan, Iowa, in the spring, it said in a press release.
CFE says the new mill will be built in response to a rapidly growing livestock industry in northwestern Iowa and increased milling capacity needs.
“This new mill will help us capitalize on two unique opportunities and effectively position CFE and our farmer-owners for the future,” said Rob Jacobs, CEO of CFE.
Jacobs said the 160-foot concrete slipped mill will produce 3,000 tons of complete feed per day totaling 780,000 tons of complete feed per year.
Construction is set to begin in early spring 2017 with production beginning in late summer 2018. Once completed, the feed mill will employ up to 28 people.
Growing livestock sector
The livestock market in northwest Iowa has grown rapidly in recent years. That growth has been driven in large part by processors.
The new feed mill will process up to 70,000 bushels of corn daily. This demand will provide an alternative for local producers to sell their grain back to the farmer-owned cooperative instead of selling to other sources outside of the area.
“The expansion will not only allow CFE to keep pace with the growth of the local livestock market, but it will also give more of our producer-owners a chance to sell their grain back to CFE, which, in turn, will increase their options and potentially their profitability,” Jacobs said. “In that sense, this is truly a win-win for CFE and our member-owners.”
Adapting to new regulations
Beyond keeping pace with a growing livestock market, the new feed mill also supports CFE’s commitment to compliance as this new facility will provide a ractopamine-free production process to producers who partner with local livestock producers and integrators who require ractopamine-free feed products for livestock. This process will guarantee that producers receive quality feed mixes and meet growing demand.
“We’re completely committed to supporting our member-owners as our local livestock market changes,” Jacobs said. “Their success is our success, and this feed mill is just one of the many ways we will continue to show our commitment to their operations’ success.”