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Celebrating 75 Years of History
On Wednesday night they gathered. It was September 19, 1907, and
for the first time, farmers in Ralston were gathering together
to talk about organizing their own company. The goal of this
company would be to buy and sell the grain that these farmers
produced. The meeting was held at McNabb Hall, on the west side
of town. Following the meeting, on September 27, the area
newspaper, the Glidden Graphic, published the following:
“A meeting was held at McNabb’s Hall Wednesday evening of last
week for the purpose of organizing a Farmers Elevator Co. in
Ralston. The required number of names had previously been
secured and the organization was completed with 165 members. The
following officers were elected to hold office until the first
annual meeting of the stockholders. President: T.E. Dreher; Vice
President: Reece McCormick; Secretary: George Gregory;
Treasurer: L.J. Tower.
Originally established as a stock company, what was once the
Farmers Elevator Co. in Ralston emerged 75 years later as
leading agricultural cooperative and biodiesel innovator.
The Farmers Elevator Company began operations with a 20,000
bushel elevator, scale and small office in Ralston, Iowa. The
Farmers Elevator Company proudly served farmers in a five to ten
mile radius of Ralston. The total cost of the buildings, ground
and equipment, in 1907, was $5,593.37. Today, West Central
operates 18 locations in a 55-mile radius of that original
Ralston location, handling more than 80 million bushels of grain
each year and further processing soybeans into a variety of
value-added products.
Key points in cooperative history include:
- With the onset of depression and the
1929 stock market crash, business started to slow. Going
into these uneasy years, the buildings and equipment of the
company were listed on the books at $16,000.00. This is a
value that would soon decrease. The balance sheet for 1932
showed a deficit of about $600.00. In all actuality, it was
much higher.
- March 22, 1933, the organization
incorporated as The Farmers Cooperative Association of
Ralston.
- In 1935 the cooperative hired its
first manager, Karl Nolin. He explained later in a 1959
edition of the Co-op News that he’d also applied elsewhere,
but so had 50 others. In Ralston he was one of three
candidates. His odds were much better. The board interviewed
these three candidates until 1:00 a.m. Finally, one board
member is noted as having said “let’s hire the windy one and
go home.” It was then that Karl Nolin, the windy one, was
hired.
- Following the depression area, and
with a full crew, the Farmers Cooperative Association of
Ralston flourished during fiscal year 1937. At the ’37
Annual Meeting, in front of 102 members, the cooperative
boasted a profitability of $1,930, a $3,000 turnaround over
its 1935 loss. The Farmers Cooperative Association had
doubled its business over the last two years.
- The Farmers Cooperative Association
began processing locally gown soybeans in its new soybean
processing plant in 1942. The reality of the time was that
beans weren’t used in Iowa, they were shipped south for
processing on cottonseed processing machines and then
shipped back and sold in Iowa as a high protein livestock
feed. This didn’t make sense to Co-op Manager Karl Nolin.
Why wouldn’t we keep our locally grown beans right here,
process them ourselves, and provide that same quality, high
protein livestock feed to our members at a discounted rate?
And so, the cooperative delved into soybean processing.
- By 1954, total co-op storage capacity
had reached 1,505,000 bushels, more than 75 times its
original 20,000 bushel capacity in 1934.
- In 1955 the cooperative began
branding its bean meal as “Farmers Feeds”. In the 1955
annual report it was noted that approximately 80% of the
grain received during the year was not shipped out, but
rather used by the co-op’s feedmill to supply area feeders.
- In 1957 Ralston’s feedmill was
destroyed by fire, less than a year after it was built (July
1957).
- 1958, the cooperative’s lumber and
building supply business is flourishing with post-WWII
building.
- A February 1957 meeting held at the
REC building in Jefferson, Iowa, brought together nearly 200
to discuss the Farmers Cooperative Association’s possible
growth and expansion into Jefferson. A committee of
interested individuals was appointed to explore the option.
This committee included Hans Giese, Frank Tasler, Clyde
Burns, Eugene Melson, Walter Barrett, Roger Dunlap, Harvey
Coleman and Elvar Perkins.
- The first issue of Co-op News was
also published in 1958. This started as a monthly
publication for members and area residents. Propaganda
regarding cooperatives was running rampant and association
management used the Co-op News as a tool to share the
organizations purpose and goals.
- In January 1959, the committee that
had been previously appointed to explore the option of a
Jefferson branch elevator met again with the Ralston Farmers
Co-operative Association board of directors. Karl Nolin
announced plans to go ahead with building in Jefferson. The
new facility would have an elevator and flat storage
building south of Highway 30 along the railroad track.
- The first load of grain delivered to
the Farmers Cooperative Associations new Jefferson elevator
and location was delivered on Thursday, August 20, by Curtis
Cairns of Farlin. More than a million bushels were received
in Jefferson over the next 60 days. Seven men were employed
by the Jefferson branch when it opened, three inside and
four outside. An open house was held at the Farmer
Co-operative Association’s new Greene County facility in
Jefferson, following the harvest season. The three-day event
was held Thursday, Friday and Saturday, March 17 through 19.
The open house would include refreshments and tours, as well
as a variety of door prizes, including sterling silver
coffee service, a man’s sport coat, clock radio, electric
shaver, electric frying pan, and a camera. Favors were
offered for everyone. More than 1,000 attended.
- Late in ’59, what sounded like an
explosion turned out to be a flat storage wall breaking way
in Jefferson. The building spilled nearly 150,000 bushels of
grain when the wall gave way. Employees had been working in
the flat, leveling the corn, 15 minutes earlier, but had
left the flat prior its giving way.
- During the ‘60’s, the business of
liquid fertilizer and ammonia also started to take off. The
cooperative remodeled the old Moorhouse Ralston elevator
into a bulk fertilizer plant. Moving from bagged to bulk
fertilizer was a big step for the organization, although
Farmers Co-operative Association did not get into the
application business. Private applicators were available
throughout the area to provide this service for farmers.
- The Ralston Farmers Co-op News,
published February 1961, featured a photo of a tank car
filled with 20,000 gallons of soy oil, which would be
shipped to Lindsay, California. This was a large tank car
for its day, nearly 2½ times the size of a usual tank car at
that time. The net weight of the soybean oil shipped in this
car was 150,520 pounds, representing nearly 16,000 bushels
of beans. The car was sold at $10.35 per hundred for a total
of $15,578.82 FOB Ralston, Iowa.
- In 1963, the cooperative offered a
promotion called the “C-Q Discount”. C-Q stood for cash and
quantity. While the goal of the promotion was to increase
feed sales, the promotion also applied to all farm supplies.
The program offered discounts for bulk purchases of Farmers
Feeds – the coops branded feed line – and prompt payment.
The program operated for five years, and each year sales
increased. Members received $750,000 in discounts through
the program in recognition of their prompt payment of
monthly statements. After five years, the program was
discontinued. Farmers Feeds sales, however, continued to
grow.
- Early in the ‘60’s, however, a major
change in agriculture took place throughout the country when
the government farm and storage programs were changed. Local
farmers elevators were no longer needed to store government
grain, diminishing these organizations’ storage income and
creating space in within facilities. With inflation
continually rising, and a decrease in storage income, the
cooperative was forced to look at improving efficiencies and
lowering costs.
- By 1964, marketing manager Tom
Feldmann began exploring futures and hedging, and looked
into multi car shipments. He was one of the first in the
region to begin using hopper cars. As the world of grain
marketing was beginning to go public and loose its
governmental influence, Feldmann was taking this opportunity
and running with it. West Central was one of the first
cooperatives in the area to use unit trains and the
cooperative reaped the benefits of giving farmers a better
price for their grain as a result. This opened up an
entirely new market for the cooperative to market their
member’s grain.
- A new type of hog feed was introduced
in 1967. Pelleted “sow brickettes” were added to the coop’s
swine feeding program. A sow could be hand fed three to four
pounds of brickettes a day, with little waste. The
brickettes contained 20% protein and were available with or
without NF-180.
- It was also announced in ’67 that a
change in the farm bill would allow producers to reseal any
commodity previously sealed or resealed. According to a July
1967 article in the Ralston Farmers Co-op News, “…1966 grown
corn stored on the farm which is eligible for sealing and
least year’s soybeans stored on the farm, but not sealed,
are still eligible for support loans by route of a reseal
loan program.”
- Anhydrous ammonia was available
through the cooperative for the first time in 1968. In
addition to 41% liquid nitrogen and bulk and bagged dry
fertilizers, the anhydrous ammonia could be purchased at
either the Ralston or Jefferson elevators.
- In 1970, General Manager Karl Nolin
was recognized as Iowa Agri-Business Manager of the Year by
the Agricultural Business Club of Iowa State University. The
award recognized Nolin’s constant push to keep The Farmers
Co-op Association at the forefront of the agricultural
industry.
- In 1971, the only general manager The
Farmers Co-operative Association had ever known announced
his impending retirement. But, he had a plan. He’d been
working to prepare two individuals to step into his shoes.
Wayne Seaman and Tom Feldman were in their ‘30’s. They’d
been working within the cooperative for more than a decade,
filling various positions. They’d started at the bottom and
worked their way through the ranks. As Nolin was announcing
to the board his retirement intentions, he was also pointing
to two young men he felt capable of taking the reigns. In
1972, Nolin stepped down and the Seaman-Feldmann duo stepped
up. Both men had different personalities, which complimented
each other nicely. Seaman was outgoing and aggressive,
enjoyed dealing with people and was an idea man. Feldmann on
the other hand was more analytical, was great with numbers
and figures, as well as creating innovative plans in the
area of grain marketing. He was a leader in buying, selling
and transporting grain. Both recognized their differences,
and respected them.
- In 1972 new General Manager Wayne
Seaman announced the coop had purchased its first computer.
The computer would be used to print checks and keep records.
- Another milestone in 1972 was the
first 50-car rail shipment out of the Jefferson location. On
Monday, August 21, a 175,000 bushel of corn and soybeans
shipment left the Jefferson location headed for the gulf
port. Not only was this a first for the Farmers Co-op
Association, it was the first train to be loaded from any
Iowa country elevator point on the CNW Railroad.
- The Farmers Co-op Association
increased its shipping capacity in 1974 by leasing an
additional 150 grain rail cars. But these weren’t just any
cars. They were pink. The Farmers Co-op Association garnered
national attention for its pink cars. With the release of
government control over grain shipping, embargos over
Russian wheat sales, an active export market, Iowa corn
production outpacing internal demand, and many other events
taking place at this time, shipping corn was a quick and
efficient way for cooperative’s and grain handlers to earn
extra income. Additionally, the railroad was giving
incentives and discounted freight rates for loading greater
quantities of grain. Leasing their own cars gave Farmers
Co-op Association an edge. And the pink rail cars also gave
them an additional advantage – very few were interested in
using the co-ops pink cars. Farmers Co-op Association didn’t
have to struggle nearly as much as other cooperatives for
cars, the pink rail cars were easy to find and spot, and
generally available.
- In 1978, the original computer system
(purchased six years earlier) was outdated. The co-op
installed a new computer system, one that faster and capable
of doing even more detailed work.
- Later in ‘78, at the annual meeting,
members voted overwhelmingly to change the name of the
business to West Central Co-operative. The purpose of the
change was to distinguish the organization. Several
elevators were referred to as “Farmers”. To differentiate
between them, members had begun to say “Ralston Co-op”. West
Central Co-operative was much more distinguishable and
geographically descriptive.
- The feed department also re-branded
their feed products in 1978 to correspond with the co-op’s
name change. Area producers would now be purchasing Wescenco
Feeds, rather than the Farmers brand feeds they’d been
accustomed to.
- On February 1, 1979, West Central
Co-operative announced it would merge with the Farmers
Elevator and Livestock Co. at Boone. This would combine that
organization’s Boone and Jordan elevators with West
Central’s two pre-existing elevators. The co-op would double
in size.
- The first 75-car train was loaded at
the Boone facility on March 11, 1980, with scores of
farmers, area residents, TV, radio and newspaper media,
government and agricultural leaders watching. This was the
first 75-car train loaded in Iowa. The Ralston and Jefferson
location had only been loading 50-car trains.
- On February 2, 1981, a large steel
bin at the Ralston elevator collapsed and was destroyed. The
tank was originally built in 1961.
- Even though the name had changed only
a few years earlier, West Central re-branded their feed
products again in 1982, adding and emphasizing the name “X-Cel”.
- In the March 1982 edition of the
Co-op News, it was announced that West Central would begin
offering crop consulting. This service would provide farmers
a complete and detailed look at the fertility of their soil.
By analyzing soil fertility, farmers could more efficiently
and accurately apply specific nutrients for a balanced
fertility.
- In October 1983, it was announced
that members of the Farmers Cooperative at Halbur and
Templeton had voted 87% in favor of merging with West
Central Cooperative. West Central then went on to purchase a
160,000 bushel elevator in Templeton from Agri-Industries in
December of that same year, giving the cooperative a total
of 765,000 bushels of storage in Templeton. With the merger,
purchase of the additional elevator, and planned
construction, West Central would grow to become a 21½
million bushel grain handling company. Furthermore, the
newly added Templeton location was located on a Burlington
Northern Railroad line.
- The newly incorporated Templeton
location shipped its first unit train on May 18, 1984.
Headed for the west coast export market at Tacoma,
Washington, the 54 jumbo hopper cars contained 190,000
bushels of corn. Each car held 3,500 bushels and was loaded
in about ten minutes.
- In 1984, the cooperative had been in
the business of processing soybeans for 40 years. In the
February 1984 edition of the Co-op News, it was announced
that West Central would be taking part in two grants
recently received to examine the ruminant protein value of
expeller processed soybean meal. The co-op had been looking
at feeding swine the high protein bean meal, but was curious
about the potential bypass value the meal could have in
cattle and ruminant nutrition. The grants were made to Iowa
State University and the University of Wisconsin. West
Central had steadily been working with Iowa State to explore
the possibilities and uses of soybean processing.
- Later that year, on July 11, 1984,
West Central Cooperative’s feed division announced the
launching of Soy Plus. During a planned media day, the
cooperative hosted industry press and local media groups.
Dr. Allen Trenkle, professor of animal science at Iowa State
University, spoke to the crowd and reviewed recent research
he and his staff had done with the expeller processed
soybean meal, now being branded as Soy Plus. Trenkle
explained that his research indicated a 60% greater bypass
protein value from the Soy Plus expeller processed soybean
meal, than from the same pound equivalent of solvent
processed soybean meal. General Manager Wayne Seaman pointed
out that the cooperative had been expeller processing
soybeans since the ‘40’s, but only recently began to
consider the applications of the bypass protein value in the
meal.
- Closing the year, the headline in the
December 1984 Co-op News tackled the pressing farm crisis.
Citing high interest rates and low commodity prices, the
state had experience the greatest single year land price
declines since the Depression years of the 1930’s. The
domino-effect would be that the drop in land values was the
single cause of the equity crisis facing many farm families.
West Central took an active role during the financial farm
crisis. The co-op met with a variety of vendors, such as
Pioneer Hi-Bred, Walnut Grove Products, Kent Feeds and more,
to study the problem and discuss possible solutions. West
Central also helped host a statewide meeting at Iowa State
University to inform a cross section of leaders of various
state organizations about the problem. The farm crisis would
affect not only farmers and agribusiness, but rural Iowa as
well.
- With Soy Plus sales skyrocketing
throughout the ’80’s, a soy plant expansion was necessary by
1986. By then, Soy Plus was being shipped across the U.S. by
both truck and rail. The expansion would add an additional
two expellers to the existing six, increasing capacity by
50%.
- The Ralston feedmill received
honorable mention in a national “Feed Mill of the Year”
competition in 1988 and 1989. Sponsored by the American Feed
Industry Association and Feed Management Magazine, the
contest was a national event. The mill was judged on quality
control, safety, government compliance and plant appearance.
Also included in the judging were productivity, efficiency
and customer relations.
- A fertilizer and chemical
distribution center was developed by the co-op in the summer
of 1988. The Nelson plant would be located south of Coon
Rapids and east of Audubon. The Nelson location is named
after the town of Nelson, which had a post office, country
store and blacksmith at that very site from 1894 to 1905.
- The Farmers Cooperative of
Audubon-Exira unification with West Central became official
on June 1, 1989. Talks between the two organization’s
management teams and board of directors had been ongoing for
months. Immediately, plans were laid out for expansion of
the grain, fertilizer and chemical facilities at these
locations.
- In 1990 the Nichii Company of Osaka,
Japan, announced plans to build a food processing plant in
Iowa. Along with Governor Terry Branstad, Wayne Seaman and
Tom Feldmann took part in the signing ceremony. Although it
had not yet been determined where the site would be,
preliminary indications were that it would be located at a
West Central site. It was announced April 23, 1990, that the
plant would be located near the Jefferson elevator
facilities. The relationship with Nichii began in 1989, when
West Central made its first shipment to the food processor,
and to Japan.
- In September 1990 General Manager
Seaman announced a new employee based program title Customer
Focus. The program would be built on four cornerstones:
quality, professionalism, innovation and integrity. The
program would be an employee based commitment to thinking of
the customer first.
- The January 1991 edition of West
Central Co-op News kicked off with an announcement to build
a new SoyPLUS® plant. The $4.5 million plant would process
approximately 12,000 bushels of soybeans a day or 3.8
million bushels of soybeans each year. Construction would
begin that spring and was scheduled to be completed by
winter. Leading the project would be Dr. Doug Stidham,
manager of the feed and soy division, and Myron Danzer, feed
and soy production manager.
- At an awards banquet held February 23
at Iowa State University (ISU), West Central Marketing
Manager Tom Feldmann was named Outstanding Agricultural
Business Person for 1990. The award is presented annually by
the Ag Business Club at ISU.
- In late spring 1991, it was announced
that West Central would purchase Adair Feed & Grain and take
possession August 1, 1991. The possession date, however, was
delayed because of a lengthy environmental audit, which the
purchase was contingent upon. After completion of the
environmental audit, and following negotiations with Charlie
Crawford, owner of Adair Feed & Grain, West Central took
possession on June 1, 1992. The Adair location is situated
on the main line of the Iowa Interstate Railroad, and gave
West Central access to new markets. Included with the
property were storage and handling facilities, a
full-service feedmill, as well as seed, chemical and
fertilizer storage.
- One of 31 dealers across the United
States, West Central earned the Environmental Respect Award
in 1991. More than 400 competed for the award, and were
judged on proper designed, storage and handling procedures,
application, leadership in environmental “activism”, and
concern for stewardship and safety among farmers and
employees. Within its own four-state region, West Central
received the top honor as the regional winner.
- The Nichii Company opened their
Jefferson soyflaking plant that summer (1991), the first in
the United States. Built adjacent to West Central’s
Jefferson facility, the Nichii plant estimates using 1.5
million bushels of Iowa-grown soybeans each year.
- For several years, West Central had
been marketing its own Tri Valley brand corn and soybean
seed to its members. For the 1992 season, it was announced
that the cooperative would team with Stine® to market their
corn and soybean varieties. Combining efforts with West
Central’s Tri Valley brand, gives West Central access to
Stine’s commercial and specialty varieties.
- An open house was held on Monday,
March 30, 1992, to unveil the cooperative’s new
state-of-the-art SoyPLUS processing facility. More than
1,000 people attended the event, touring the new $5.5
million facility. SoyPLUS is now being sold in Minnesota,
Wisconsin, Pennsylvania, New York and Maryland. As the
popularity of SoyPLUS grew, so did the value of the
intellectual property behind the product, and the research
that had gone into developing it. To protect all of that,
West Central applied for patent, and in 1993 became the
first all-natural soybean meal in the world to be protected
by a U.S. patent.
- After many years of developing
locally processed soybeans, adding value to member’s grain,
the Iowa Soybean Promotion Board recognized West Central for
its work in 1993 with the Ag Industry Award. The award
recognizes local supporters of the soybean industry, those
who seek new ways of marketing soybeans, support efforts to
expand commodity markets through promotion, education,
research and market development.
- 1993 closed with West Central
receiving the “Industry of the Year” award from the Iowa
Department of Economic Development (IDED). The award was
presented in the 101-250 employees size business category,
with West Central employing 125.
- In 1994, the cooperative launched its
“Excellence in Agriculture” scholarship program. The program
would award three one-year scholarships, each for $1,500.00,
to students pursuing an education in an agriculturally
related field.
- The State of Iowa recognized West
Central its outstanding commitment to safety in 1994. West
Central surpassed the national rating standard for the
number of company accidents. West Central’s safety program,
now managed by Kevin Danner, safety director, was originally
initiated in 1974.
- West Central grew in 1995 with the
unification of Consolidated Cooperative in Gowrie. An
announcement in the April 1995 edition of West Central Co-op
News announced an 85% (in favor) vote of Consolidated
members to unify with West Central of Ralston. Consolidated
had first contacted West Central in September ’94 about
unification. The unification became official May 1, 1995.
Consolidated Cooperative had four locations at the time,
Callender, Gowrie, Harcourt and Palm grove. Consolidated was
also operating their own propane business, known as
MidStates Energy.
- SoyPLUS sales had soared throughout
the previous decade, and the plant processing capacity had
grown to accommodate these sales. As a part of the process,
soy oil is produced when the beans are heated and squeezed.
As more beans are processed, more soy oil is produced.
Realizing the value of the oil, West Central’s management
team began experimenting with uses for the oil. Lead by
Myron Danzer, feed and soy production manager, West Central
invested in the first step of crude oil refinement on May 1,
1995, with the purchase of a water degumming process. In the
process, a small amount of water is added to the oil. The
mixture is then put through a centrifuge, where the hydrated
phosphatides, gums and other impurities are removed from the
oil. The oil then enters a vacuum dryer where the moisture
is reduced. This makes the oil more marketable and valuable
to end users, allowing West Central to enter the refined oil
market. Lecithin is produced in a similar manner, a process
the cooperative was also looking at investing in. As it
explored the soy oil market, West Central began to build a
relationship with the InterChem Company of Overland Park,
Kansas. Together, West Central and InterChem formed a
limited liability company (LLC) which would become known as
InterWest. This 50-50 owned LLC would be the entity
processing the soy oil, and then further processing some of
the refined oil into methyl esters. Methyl esters are key to
producing several products, including soy diesel. The
relationship was a win-win for West Central and InterChem.
West Central members received more value for their soybeans,
and InterChem gained a supplier of methyl esters for
production of their Soy Clean product. Immediately it was
announced that the cooperative would look at constructing a
soy oil and methyl ester manufacturing facility in Ralston.
At an August 22, 1996, open house, hundreds of members,
invited guests and officials, including Governor Terry
Branstad, toured the facility. Doug Stidham, soy division
manager, explained to the crowd that the plant was built to
refine 600,000 gallons of methyl esters annually, but was
designed to accommodate expansion easily.
- What was known – at the time – as soy
center II came online in 1996. The original soy center
production facility built in 1992 outgrew production
projections much earlier than expected. Renovations and
updates were made, a new control panel was added and a new
counter flow meal cooler installed to convert the production
facility into soy center II, capable of handling the
increasing demand.
- On April 1, 1996, West Central
purchased the Cal-Car facilities at Jefferson, Grand
Junction, Roselle and Westside. Soon after, the Westside
facilities would be sold again, but West Central would
develop the Jefferson, Grand Junction and Roselle locations.
The cooperative also purchased Terra’s Carroll location this
year.
- Two foreign companies approached West
Central in ’97, inquiring about SoyPLUS. The companies were
interested in purchasing the SoyPLUS technology, for
manufacture in their own countries (Korea and Argentina).
While talks proceeded with the Argentinean group, neither
sale came to fruition.
- After 36 years of service, a big
announcement came early in 1997 when Tom Feldmann announced
his retirement. In addition to his service to West Central,
Feldmann worked with several other organizations and
associations, including the National Grain and Feed
Association (NGFA), serving on the country elevator
committee, the commodity exchange committee and the trade
rules committee. He also served as a board member on the
Farmers Commodities Corporation and the United Service
Association, and as vice president of the Heartland Rail
Corporation (majority owner of the Iowa Interstate
Railroad). Feldmann’s last day would be May 31, 1997.
- As West Central continued to look
more and more into the value-added markets, it introduced
Eagle MSO. A methylated soybean oil, Eagle MSO is an
all-natural product used with some post-emergence herbicides
to enhance their effectiveness.
- The soy center received kosher
certification from the Orthodox Union in ’97. A.C. Humko –
Kraft – was a customer, using West Central soy oil in their
food products. Since all Kraft products are certified
Kosher, the ingredients that go into them must be too. In
order for any food to be certified as Kosher, it must meet
the requirements of Jewish law.
- Beginning in 1997, West Central’s
feed department began fueling their feed trucks with a 5%
soydiesel blend. At a 5% blend, management estimated the
trucks would burn the oil from 12 bushels of beans each day.
MidStates Energy also began selling soydiesel fuel in ’97,
branded as SoyPOWER®.
- A milestone in 1998 was the
introduction of yet another value-added product, SoyChlor®.
Like SoyPLUS, SoyChlor was designed for the dairy industry.
Developed to help dairy producers with the challenges
associated with milk fever, SoyChlor was produced in Adair.
A combination of SoyPLUS and chloride supplies the cow with
protein and hydrochloric acid. The Adair plant construction
was completed in 1999, and the product would be marketed
throughout the United States, Canada and Mexico.
- On Tuesday, June 9, 1998, members of
Farmers Elevator Cooperative (FEC) of Scranton-Bagley voted
to unify with West Central Cooperative. Over 94% of FEC’s
members, who voted, voted in favor of the unification. In
addition to the three million bushels of storage capacity, a
large capacity liquid fertilizer terminal is located in
Scranton. That terminal would be very beneficial to West
Central, able to accommodate all of West Central’s liquid
fertilizer needs.
- September 1, 1998, Farmer’s
Cooperative Elevator Company of Boxholm officially unified
with West Central. A vote by Farmer’s Cooperative Elevator
members on July 27 overwhelmingly approved the unification.
Located directly between West Central’s Gowrie and Boone
locations, the Boxholm site made a nice addition to the West
Central strategic plan. The Boxholm facility includes
concrete elevators, metal storage and a feedmill. Boxholm
also has three feed delivery trucks and at the time of
unification, sold approximately 60 to 65 tons of feed per
day, making it a strong feed asset. And while the location
is located on Highway 169, it does not have rail access.
- Two years after the retirement of his
co-worker and partner, Wayne Seaman announced his pending
retirement. After celebrating 42 years with the
organization, leading it for 27, he would step down. Seaman
made his retirement effective anytime within 12 months of
his announcement, pending the naming of his replacement. Six
months later, the board of directors made their selection.
They’d found the individual they wanted to lead the
cooperative. Jeffrey Stroburg, then vice president/COO of
the eastern ag region for Land O’Lakes, Inc., had been
hired. Stroburg would bring a unique leadership style to the
position and to the cooperative.
- West Central was named Ag Retailer of
the Year in 1999 by Ag Retailer magazine, a very prestigious
honor.
- Also in 1999, West Central launched
its website,
www.west-central.com.
- On June 1, 1999, West Central
acquired Cargill facilities in Beaver, Dawson, Woodward and
Bouton.
- At a Chapter 11 asset sale in 2001,
West Central purchased that cooperative’s Casey site. This
site included 1.1 million upright steel grain storage and a
dry fertilizer facility.
- In 2002, West Central took the use of
the computer one step further and developed a Customer
Management System (CMS). This new program allows cooperative
employees to easily gain access to important customer
information when they need, such as product prices and
information, grain marketing information, and customer
preferences.
- Resurrecting an old brand, Tri-Valley
Seed came back to life in 2002. In cooperation with FC
Cooperative (Farnhamville) and Eden Enterprises (an
affiliate of STINE Seed), Tri-Valley Seed would be very
similar to the Tri Valley Seed of the past. STINE, through
Eden Enterprises, would provide the genetics, while West
Central and FC Cooperative would oversee distribution and
marketing.
- More than 1,200 members, farmers,
community members, agricultural and renewable fuels leaders
gathered in Ralston on August 21, 2002, for what would
become a tipping point in West Central’s history. Following
an explosion at West Central’s InterWest facility June 19,
2001, there was a need to rebuild the soy biodiesel and
methyl ester processing plant. Following the incident,
management worked immediately on plans for a new facility.
The demand for soy biodiesel had been growing. The previous
plant was a batch-process facility, creating one batch at a
time. Having been working with methyl esters for nearly a
decade, however, West Central management had the experience
and knowledge to tweak that process, making it more
efficient. The result was the nation’s largest, and the
first, continuous-flow soy biodiesel processing plant.
Unveiled that day in August 2002, the 12 million gallon
plant was a state-of-the-art, automated facility that would
bring about a flurry of revolution in the renewable fuels
industry.
- In December 2002, the cooperative
began marketing its biofuels intellectual property through a
new subsidiary, Renewable Energy Group (REG). REG would be a
collaborative effort between West Central and Todd & Sargent,
the engineering firm that assisted with the Ralston plant
construction.
- In 2004, REG would begin construction
of a 30 million gallon plant for its first customer, SoyMor,
located in Glenville, Minnesota.
- West Central’s Audubon locations’
liquid fertilizer facility was automated in 2003, giving
customers twenty-four hours a day, seven days a week access
to products they would need for their operation. Bulk
chemical sites would also become automated, giving way to
greater efficiencies.
- The grain division began automating
elevators in 2003. Again, the goal is efficiency.
- In 2004, West Central triples its
abilities to load outbound grain.
- On Friday, May 13, 2005, a smolder
began in a large 750,000 bushel bin at the Jefferson
location. Crews responded quickly, and the smolder never
grew into flames.
- REG began construction of Western
Iowa Energy, LLC, in Wall Lake, Iowa, in June 2005. In the
backyard of West Central and REG, this too would be a 30
million gallon continuous flow operation. With the growing
popularity of biodiesel, and locally produced soy biodiesel,
Iowa Governor Thomas Vilsack declared the week of May 17,
2004, Iowa Soy Biodiesel Week.
- In 2005, after almost a decade of
substantial growth, SoyChlor had outgrown its current
production facility in Adair and moved to Jefferson. South
of the Jefferson elevator, a fully automated,
state-of-the-art production facility was created to
accommodate the growing popularity of this dairy product.
The new plant began producing on February 14, 2005. Its
first year of production, the plant operated approximately
ten hours a day, producing ten tons an hour. That’s more
than 36,000 tons a year. In 2007, the plant ran 15-16 hours
a day, again producing ten tons an hour, or more than 58,000
tons in a year.
- February 2005 was also a big month
for West Central’s agronomy division. Talks had begun in
2004 between West Central agronomy management and Agriliance®,
a wholesale inputs distributor based in Minnesota. By
working together, the organizations would increase their
buying power, and be able to pass those savings on to
customers. On February 1, 2005, Westco became the official
entity representing this new partnership. Uncommon in the
industry, a retailer and distributor had officially
partnered together to eliminate a link in the industry’s
supply chain.
- After months of discussions with
potential investment partners, CEO Jeff Stroburg announced
on August 14, 2006, that Renewable Energy Group®, Inc. had
completed a $100 million private equity financing and
partnership deal. West Central, investing the cooperative’s
biodiesel assets, would hold controlling interest in the new
limited liability company. Other investors would include NSP
Energy Technology Partners, L.P. (an affiliate of NGP Energy
Capital Management), E D & F Man Holdings Ltd., Bunge North
America, Natural Gas Partners VIII, the Sargents, and
several Iowa investors.
- By the close of 2007, REG would have
seven biodiesel production facilities in production. The REG
network would reach as far south as Louisiana and into
Canada. REG offers clients complete turn-key construction,
as well as management opportunities, procurement and
marketing services. REG quickly becomes the nation’s largest
marketer of biodiesel.
- Teaming up with area cooperatives –
Dedham Cooperative, FAC-Arcadia – and Agriliance, West
Central’s agronomy division created Templeton Crop
Nutrients, or TCN. Located west of the Templeton elevator,
TCN is a bulk dry fertilizer hub, capable of rail cars of
dry fertilizer and holding more than 22,000 tons of dry
fertilizer. This facility was also unique with three local
cooperatives, and a distributor, teaming together to better
serve a greater audience. Construction on this plant began
early in 2006, and nearly 800 farmers, community members and
industry leaders attended its open house on September 14,
2006 in Templeton, Iowa.
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