Consistent with its corporate commitment to agriculture and environmental stewardship, Perdue Incorporated has formed Perdue BioEnergy LLC, a new company that will focus on the growing biofuels industry. 

As the 12th largest grain company in the U.S. with three soybean crushing plants and a deepwater port, Perdue is well positioned to tap into this growing market.  The company currently partners with biodiesel and ethanol producers to provide feedstocks and to market co-products.

In May 2006, Perdue signed an agreement to provide corn to Northeast Biofuels LLC for an ethanol plant to be built in Fulton, New York.  Already in place are agreements to supply soybean oil to biodiesel plants in New Jersey, Virginia and Delaware.  Other contracts to supply grains and soybean oil to biofuels facilities are pending.   

“Biofuels are a rapidly growing part of our portfolio, and we will be actively involved in this developing industry,” said Jim Perdue, chairman of Perdue Incorporated.  “Addressing the nation’s energy needs through biofuels such as soy biodiesel and ethanol is consistent with our commitment to farmers, to the environment and to agriculture in general.”

The Grain & Oilseed Division’s soybean crushing operations produce crude soy oil, which it converts into refined oil in its soybean oil refining operation, which is then sold for conversion into biodiesel.  PACMA, a commodities trading operation, and VENTURE Milling, a custom-blended protein feed manufacturer, enables Perdue to buy and sell feed ingredients in the domestic and international marketplace, providing a ready outlet for biofuel co-products such as dried distillers grains. 

“We see biofuels as a growing opportunity to expand markets for farmers,” said Dick Willey, president of Perdue Farms Grain & Oilseed Division.  “Our network of grain facilities enables us to buy grain from local farmers and dealers for further processing, feed manufacturing and domestic and international merchandising. Biofuels and their co-products offer another avenue, strengthening demand for U.S. crops.” 

Beyond being a supplier of feedstocks, Perdue is actively exploring opportunities for equity positions in biofuel plants, through strategic partnerships or building its own biofuel plants.  “Perdue BioEnergy will evaluate a number of options which will further leverage our vertical integration and built-in demand for biofuels and their co-products,” Willey said.  “We are committed to the biofuels market, as a supplier, producer and consumer.”

In addition to providing raw materials and marketing co-products from biofuel production, Perdue itself is a biodiesel consumer.  Following a successful trial, the company is currently using biodiesel in part of its fleet. 

Beyond being a supplier of feedstocks, Perdue is actively exploring opportunities for equity positions in biofuel plants, through strategic partnerships or building its own biofuel plants.  “Perdue BioEnergy will evaluate a number of options which will further leverage our vertical integration and built-in demand for biofuels and their co-products,” Willey said.  “We are committed to the biofuels market, as a supplier, producer and consumer.”

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