Renovation driven by strong global demand in food and energy markets
CHS Inc., the nation’s leading agribusiness cooperative, today announced a major soybean refinery expansion and renovation project at the CHS Mankato, Minn., soybean processing plant, driven by global oil demand. The more than $60 million project is the second phase of CHS investments to capitalize on changing market dynamics and opportunities to grow market access. When upgrades are completed, annual refined soybean oil production at the Mankato facility will increase by more than 35%.
“Trends in global consumption of refined oils such as soy, canola, and palm remain strong, especially in the renewable diesel sector, with projected continued tightening of stocks,” says Tom Malecha, CHS vice president, Global Grain & Processing operations. “We’re seeing tremendous opportunities to maximize our farmer-owners’ investments in high-performing assets and infrastructure.”
Groundwork for CHS strategic growth plans to participate in burgeoning oil markets began in October 2019, with a 24-month construction project at its Fairmont, Minn., plant, which increased soybean crush capacity by 30%, and replaced outdated equipment.
“We’re buying and crushing more local soybeans and transporting more crude oil to the Mankato plant for refining,” says Malecha. “We’re looking forward to being able to process even more of farmers’ soybeans into value-added products, which are in high demand by global customers in several market segments.”
Along with improvements to fully optimize soybean oil refining, related Mankato plant improvements include upgrading and expanding the entire refining process, and improving process flows to reduce operating costs. Project completion is expected in late summer 2023.
CHS Inc. (www.chsinc.com) creates connections to empower agriculture. As a leading global agribusiness and the largest farmer-owned cooperative in the United States, CHS serves customers in 65 countries. We provide critical crop inputs, market access and risk management services that help farmers feed the world. Our diversified agronomy, grains, foods and energy businesses recorded revenues of $35.5 billion in fiscal year 2025. CHS is committed to reducing our impact on the planet, finding and developing new solutions in agriculture and energy, and investing in ways to build a better future for our owners, customers, employees and communities.
