DES MOINES (DTN)--Archer Daniels Midland said it will close another soybean crushing facility as margins are sagging, according to OsterDowJones.
The North Kansas City, MO, plant closure, in addition to the continued closure of the soybean crushing operations in Little Rock, AR, is "due to the current poor crushing margins," the Decatur, IL, company said in a statement Wednesday.
Soybean crush margins, or the difference between the price of the beans and the byproducts produced, have suffered in the U.S. due to too much capacity and weak demand for soybean meal--used in animal feed--due to declining livestock numbers.
The latest closing, at the North Kansas City soybean crushing and refining operations, will take effect July 21. The plant will be closed indefinitely, the company said.
Company officials weren't immediately available to say how many workers the closing will affect, or what costs will be involved.
Worldwide, Archer Daniels employs about 24,000 people and has more than 260 processing plants.
In addition to processing, Archer Daniels procures, transports, stores and markets a variety of agricultural products. Net sales in the fiscal year ended June 30, 2002, were around $22.6 billion.