Kaylor Agri-Services Expands with High-Oleic Soybean Roasting Plant
Kaylor Agri-Services, a company with a two-decade presence in South Dakota's agricultural industry, has launched a high-oleic soybean roasting plant at its Parkston location. The plant, which began operations on October 1, aims to support regional dairy operations by providing a locally sourced alternative to imported fat products.
The Parkston facility is capable of roasting up to 700 bushels of Plenish high-oleic soybeans per hour. It features a 250,000-bushel storage bin and a 15,000-bushel-per-hour unloading leg, designed for further expansion as demand increases. This initiative aligns with the company’s strategy to enhance agricultural opportunities for its clients.
Unlike traditional processing, this plant uses an identity-preserved, contract-based supply chain to maintain the integrity of the Plenish soybeans, which contain approximately 75% oleic acid. This approach ensures that the soybeans remain separate from the conventional market, providing nutritionists with the ability to formulate dairy rations that potentially increase milk fat and lower feed costs.
The project has also contributed to local economic development, aiding the establishment of a new business park in Parkston. Tax Increment Financing supported necessary infrastructure improvements, thus spurring additional business activities in the area.
The development of the plant was driven by requests from dairy producers in South Dakota for a local source of roasted soybeans. Lance Thury, General Manager of Kaylor Agri-Services, highlighted the importance of maintaining high nutritional standards through precise roasting techniques. The facility's two-stage roller grinder enhances digestibility for ruminant animals.
This new venture also involved coordinating with local farmers to produce the specialized Plenish soybeans, with growers in southeast South Dakota producing about 1.2 million bushels under contract in the latest season. Farmers were compensated with a premium over standard soybean prices, encouraging participation in this innovative agricultural initiative.
