Ag Processing Inc a cooperative (AGP) announced Friday that it has shut down operations of its corn processing plant at Hastings, Nebraska effective Feb 1, 2013.
Company officials cite ongoing challenging economic conditions in the ethanol industry for the decision of an extended shutdown of the plant.
AGP will continue to evaluate market conditions.
The cooperative also operates a soybean processing plant, a vegetable oil refinery and an AminoPlus® production facility at its industrial complex in Hastings.Those operations will not be impacted by the announcement.
AGP’s Human Resources department is working with the 43 employees affected by the corn processing plant shutdown.
“The decision to shut down our corn processing plant in Hastings was very difficult due to the employees affected and the loss of an important market outlet for area farmers,” said Keith Spackler, AGP Chief Executive Officer and General Manager. “Our facility, like other corn processing plants in the Midwest, continues to experience negative margins due to higher corn prices driven by ongoing drought conditions, and lower ethanol prices.”
AGP is among the nation’s largest producers of soy biodiesel, operating three plants in the Midwest with a combined capacity of 120 million gallons annually.