South Dakota Soybean Processors, LLC reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with revenues totaling $554.4 million, a decrease of 21.2% from $703.1 million in 2023. The company's net income also fell sharply to $20.3 million, down from $70.4 million the previous year. This downturn was primarily attributed to a decrease in average sales prices for soybean products, particularly a 23.9% drop in soybean oil prices due to reduced demand from the renewable fuel sector and increased imports of used cooking oil. The average price of soybean meal also declined by 15.3%, further impacting overall revenue.
In terms of operational metrics, South Dakota Soybean Processors processed approximately 33.3 million bushels of soybeans in 2024, consistent with the previous year. However, the company faced challenges in maintaining profitability due to declining processing margins and increased competition from new soybean processing capacities entering the market. The company’s gross profit decreased by 62.5% to $29.4 million, reflecting the adverse market conditions affecting both soybean oil and meal prices.
Strategically, the company is advancing its plans for a new oilseed processing facility in Mitchell, South Dakota, with construction having commenced in September 2023. The facility, expected to be operational by late 2025, represents a significant investment of approximately $100.4 million. This new plant will have the capacity to process 35 million bushels of soybeans annually and is part of the company's strategy to enhance its production capabilities and market position. The company currently employs around 139 individuals, with plans to increase this number to approximately 215 upon the completion of the Mitchell facility.
Despite the challenges faced in 2024, the company remains optimistic about its future. Management anticipates that market conditions will improve in 2025, supported by a strong supply of soybeans and a potential increase in renewable fuel volume obligations. The company is also focused on addressing the uncertainties surrounding the 45Z Clean Fuel program, which could impact demand for soybean oil. Overall, South Dakota Soybean Processors is positioning itself to navigate the current market challenges while pursuing growth opportunities through strategic investments and operational enhancements.
About SOUTH DAKOTA SOYBEAN PROCESSORS LLC
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