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REVIEW OF OPERATIONS
Processing and Food Ingredients
Global demand for high-quality dierentiated
soy ingredients fueled continued expansion of
CHS processing and food ingredients operations
in 2013 as CHS focused on growth in high-value
soy-based products to benefit its owners and reach
new consumer markets.
With a commitment to growing additional value
for producers, CHS oers products ranging from
soy oil and soybean meal to soy flour and soy
protein isolates, ingredients in great demand for
high-protein drinks, energy bars and foods. CHS
continues to invest in enhanced systems, elevate
food safety processes to meet global industry
standards and build distribution networks. During
2013, priorities included ongoing integration and
investments at recently acquired value-added soy
processing facilities in Iowa, Nebraska, Israel and
China. Projects included adding 180,000 tons of soy
flour production capacity at Creston, Iowa, and
making upgrades at the South Sioux City, Neb., and
Israel plants. CHS also expanded its sta expertise
in the integrated soy foods supply chain through
the addition of specialists ranging from engineering
and operations to quality assurance and food safety.
At the well-established CHS soybean processing
facilities in Fairmont and Mankato, Minn., new
storage and handling facilities increased capacity by
5.7 million bushels. CHS added processing of value-
added PlastiSoy™ epoxidized soybean oil, used as
an additive in plastics manufacturing to make PVC
materials more flexible and stable. PlastiSoy also is
used to produce inks and pigments, ag chemicals,
lubricating and cutting oils, industrial food
packaging, medical devices, and vinyl.
and opened an Overland Park, Kan., oce to
better serve that region’s customers.
Crop nutrients introduced CHS XLR-rate™ specialty
fertilizer with an initial product line consisting of
low-salt, high-orthophosphate starter and foliar
fertilizers. These complementary, value-added
products are used in conjunction with a traditional
fertility program, resulting in incremental volume
at higher margins.
CHS now sources crop nutrients from 20 countries,
manages 70 U.S. terminals and continues to
identify ways to secure supply for U.S. customers.
Projects completed in 2013 included acquiring sites
or facilities in Kentucky, Montana, South Dakota,
Tennessee and Texas, and expanding existing
storage in Iowa and Minnesota. Several involved
partnerships with member cooperatives, CHS grain
marketing and/or Country Operations, leveraging
the strength of the greater CHS system, including
forming a limited liability company with a central
Montana cooperative to construct a 35,000-ton
fertilizer warehouse.
Partnering with our owners
Country Operations growth
Building our global platform
Growing our global commodities footprint in 2013
19CHS 2013