Co-op oil mill plants seeds for growth with expansion
Agriculture Canola, sunflowers, seed oil crops added to crushing capacity
BY JIM STAFFORD
Published: October 24, 2008
The promise of a ready market for alternative crops for Oklahoma farmers has become a reality with a $3 million expansion of the Producers Cooperative Oil Mill, located at 6 SE 4, just south of Bricktown.
For more than 60 years, the Producers Co-op has processed cotton seeds into oils and other products. Now it has added canola, sunflowers and other "oilseed” crops to its processing menu, said Gary Conkling, president and chief executive officer.
Conkling joined a range of state agriculture and industry officials Thursday in celebrating the expansion in a news conference at the American Farmers and Ranchers downtown headquarters before opening the cooperative to plant tours.
Producers Cooperative Oil Mill claims 58 cotton gins in six states among its members, with annual sales of $70 million, Conkling said.
What changed
The cooperative has added capacity to crush between 500 and 700 tons of canola and sunflowers per day in addition to its current 1,200-tons-per-day capacity of cotton seed, Conkling said.
It accepted into its membership the farmer-owned Plains Oilseed Products Cooperative in 2007.
"We feel like expanding our crushing capabilities, that we are positioning ourselves to be an even more viable entity and more valuable not only to our member gins and cotton producers but producers of canola and sunflowers and other oilseeds,” Conkling said. "That in turn should bring diversity and economic stability to local co-ops,” he said.
Background to plan
American Farmers and Ranchers helped organize the Plains Oilseed Products Cooperative, which provides the promise of a ready market for alternative crops, said Ray Wulf, president and chief executive officer. The concept began with some brainstorming in Wulf’s office and was followed by a feasibility study funded by the U.S. Agriculture Department.
"The feasibility study went on to look at the dollars and cents that would allow producers to put those dollars from an alternative crop into their pockets and back into the economy of the state of Oklahoma,” Wulf said. "We felt it was a win-win situation for everybody.”
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