Sunday, March 16, 2008

Prices Force SoyMor to Close

I wonder when this will start with the Corn Ethanol Plants. Look for these guys to go crying to the government for more hand-outs.

It was a decision driven by economics.

"SoyMor board of directors have decided to suspend operations at the current time," says Gary Pestorious.

The 32 employees of the SoyMor bio diesel plant near Glenville were notified yesterday that the plant is closing, at least temporarily.

The plant turns soybean oil into bio-diesel.

And with soybean prices at an all-time high, keeping the plant open doesn't make economic sense

"Today, if you were making bio-diesel SoyMor would be doing it at a dollar a gallon loss," says Pestorious.

Soybean prices have jumped for a couple of reasons, higher demand in China, a weak US dollar and, according to board member Gary Pestorious, one of the largest recipients of government subsidies(welfare)in Minnesota, "Index Fund Money", which is buying American corn, wheat and soybean crops by the billions of dollars.

"They don't raise it,(and recieve no government welfare checks!) they have nothing to do with it, but what they've done is drive the prices up," Pestorious says.

"I view it as a temporary setback, I believe the high grain price right now will moderate and I think it will come back into production," says Dan Dorman.

The SoyMor plant has gotten economic help under the state's JobZ economic stimulus program. Yet more GOVERNMENT WELFARE!!

And it's too early to tell how the suspension might affect that status

"Is this a 60 day, or a forever deal, there are certain requirements for the JobZ program, they have to meet and if they don't they'll lose their JobZ benefits," says Dorman. (Oh My God, DON'T TAKE THE WELFARE CHECK!)

And if the economics of the soybean market change

"As we all know things continue to change and we'll back running here within the year," says Pestorious.

Operations at the plant will be ramped down over the next two weeks, and beyond that what happens here at the Soy-Mor plant near Glenville is very much up in the air.

Since 1999, the SoyMor plant has been processing thirty million gallons of bio-diesel a year.

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