Soybean Groups Form Coalition to Capitalize on Transportation Opportunities
With the U.S. economy in turmoil, consumers and farmers alike are trying to cut costs wherever they can, including transportation costs, which is why several soybean groups have established the Soy Transportation Coalition (STC). STC's goal is to comprehensively examine some of the major transportation issues impacting soybean farmers and find ways for them to save on transportation costs.
Worthington, OH, January 29, 2009 --(PR.com)-- With the U.S. economy in turmoil, consumers and farmers alike are trying to cut costs wherever they can, including transportation costs, which is why several soybean groups have established the Soy Transportation Coalition (STC).
STC is a collective effort on behalf of the United Soybean Board (USB), the American Soybean Association, the Ohio Soybean Council (OSC) and six other state soybean checkoff boards. STC’s goal is to comprehensively examine some of the major transportation issues impacting soybean farmers and find ways for them to save on transportation costs.
“With all the railroad infrastructure and intermodal developments taking place in Ohio, it is important for OSC to be represented on the STC board,” said Patrick Knoff, an OSC and STC board member. “The goals of this organization will benefit all of agriculture. It is my hope that the projects STC is investing in will help level the playing field for agriculture when compared to other industries.”
The STC will help make gains in the infrastructure challenges that face the U.S. and Ohio soybean industries. Some of these major challenges include:
• Overall rail rate levels and increases
• Rail fuel surcharges and other increases in associated costs
• Short-line railroad bottlenecks and switching costs to other lines
• Loss of rail service or no competitive service
• Costs of expanding facilities to handle larger units of trains
“There are areas where we can shed some light and explore and promote solutions, whether they are for rail, road or river transportation issues,” said Mike Steenhoek, STC executive director. “We’ll see improvements as a result.”
The short-term agenda for STC includes analyzing the impact of rail fuel surcharges, exploring ways to improve the process of shipping U.S. soybeans in previously empty containers returning to countries of origin and examining new methods to load and unload soybean meal more efficiently from railcars.
“Across the U.S. there are railroads that have been abandoned as well as locks and dams that have antiquated infrastructure. In order for us to remain competitive, it is important that infrastructure improvements like these are addressed,” said Dale Profit, OSC, USB and STC board member. “The work of STC is important because the more entities we can get that are willing to work together to address these many challenges and opportunities, the more we can accomplish in an efficient manner.”
Additionally, OSC and the soybean checkoff are looking at other ways to address these issues in Ohio. The Ohio Soy 2020 steering committee determined that infrastructure challenges needed to be addressed to secure a successful future for Ohio’s soybean industry. With that in mind, transportation and logistics were included for the first time in OSC’s strategic plan for the 2009 fiscal year with the goal of finding ways to improve existing infrastructure and to identify emerging opportunities for the future.
“Transportation and logistics were identified by the Ohio Soy 2020 steering committee as one of four key strategic themes vital to the future success of the industry,” said Kirk Merritt, OSC director of international marketing. “Working to support the robust infrastructure needed to help the export and domestic soybean and byproduct flow is important as production and processing in the state increases.”
According to Merritt, the first step is to analyze the current transportation system in Ohio to identify these emerging opportunities.
The OSC Board of Trustees recently voted to fund a transportation study that has been conducted by TranSystems Corporation and Vickerman & Associates. This study provides OSC and the entire Ohio agricultural community a broad, comprehensive overview of the current situation with regards to the agricultural logistics in the state, as well as a roadmap for the future. It identifies current and future opportunities and challenges that Ohio soybean producers could use to ensure the future of their industry.
About Ohio Soybean Council
Headquartered in Worthington, the Ohio Soybean Council is governed by a 16-member volunteer farmer board, which directs the Soybean Promotion and Research Program. The program's primary goal is to improve soybean profitability by targeting research and development projects through the investment of farmer-contributed funds. For more information: www.soyohio.org.
About United Soybean Board
USB is made up of 68 farmer-directors who oversee the investments of the soybean checkoff on behalf of all U.S. soybean farmers. Checkoff funds are invested in the areas of animal utilization, human utilization, industrial utilization, industry relations, market access and supply. As stipulated in the Soybean Promotion, Research and Consumer Information Act, USDA’s Agricultural Marketing Service has oversight responsibilities for USB and the soybean checkoff. For more information: www.unitedsoybean.org.
About Soybean Transportation Coalition
The Soy Transportation Coalition consists of seven state soybean boards, the American Soybean Association, and the United Soybean Board. The seven participating states encompass 63 percent of total U.S. soybean production. In addition, the National Grain and Feed Association and the National Oilseed Processors Association serve as ex-officio members on the STC’s board.
The seven participating state soybean boards are: Illinois Soybean Association, Indiana Soybean Alliance, Iowa Soybean Association, Nebraska Soybean Board, North Dakota Soybean Council, Ohio Soybean Council, and South Dakota Soybean Research and Promotion Council. For more information: www.soytransportation.org.
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STC is a collective effort on behalf of the United Soybean Board (USB), the American Soybean Association, the Ohio Soybean Council (OSC) and six other state soybean checkoff boards. STC’s goal is to comprehensively examine some of the major transportation issues impacting soybean farmers and find ways for them to save on transportation costs.
“With all the railroad infrastructure and intermodal developments taking place in Ohio, it is important for OSC to be represented on the STC board,” said Patrick Knoff, an OSC and STC board member. “The goals of this organization will benefit all of agriculture. It is my hope that the projects STC is investing in will help level the playing field for agriculture when compared to other industries.”
The STC will help make gains in the infrastructure challenges that face the U.S. and Ohio soybean industries. Some of these major challenges include:
• Overall rail rate levels and increases
• Rail fuel surcharges and other increases in associated costs
• Short-line railroad bottlenecks and switching costs to other lines
• Loss of rail service or no competitive service
• Costs of expanding facilities to handle larger units of trains
“There are areas where we can shed some light and explore and promote solutions, whether they are for rail, road or river transportation issues,” said Mike Steenhoek, STC executive director. “We’ll see improvements as a result.”
The short-term agenda for STC includes analyzing the impact of rail fuel surcharges, exploring ways to improve the process of shipping U.S. soybeans in previously empty containers returning to countries of origin and examining new methods to load and unload soybean meal more efficiently from railcars.
“Across the U.S. there are railroads that have been abandoned as well as locks and dams that have antiquated infrastructure. In order for us to remain competitive, it is important that infrastructure improvements like these are addressed,” said Dale Profit, OSC, USB and STC board member. “The work of STC is important because the more entities we can get that are willing to work together to address these many challenges and opportunities, the more we can accomplish in an efficient manner.”
Additionally, OSC and the soybean checkoff are looking at other ways to address these issues in Ohio. The Ohio Soy 2020 steering committee determined that infrastructure challenges needed to be addressed to secure a successful future for Ohio’s soybean industry. With that in mind, transportation and logistics were included for the first time in OSC’s strategic plan for the 2009 fiscal year with the goal of finding ways to improve existing infrastructure and to identify emerging opportunities for the future.
“Transportation and logistics were identified by the Ohio Soy 2020 steering committee as one of four key strategic themes vital to the future success of the industry,” said Kirk Merritt, OSC director of international marketing. “Working to support the robust infrastructure needed to help the export and domestic soybean and byproduct flow is important as production and processing in the state increases.”
According to Merritt, the first step is to analyze the current transportation system in Ohio to identify these emerging opportunities.
The OSC Board of Trustees recently voted to fund a transportation study that has been conducted by TranSystems Corporation and Vickerman & Associates. This study provides OSC and the entire Ohio agricultural community a broad, comprehensive overview of the current situation with regards to the agricultural logistics in the state, as well as a roadmap for the future. It identifies current and future opportunities and challenges that Ohio soybean producers could use to ensure the future of their industry.
About Ohio Soybean Council
Headquartered in Worthington, the Ohio Soybean Council is governed by a 16-member volunteer farmer board, which directs the Soybean Promotion and Research Program. The program's primary goal is to improve soybean profitability by targeting research and development projects through the investment of farmer-contributed funds. For more information: www.soyohio.org.
About United Soybean Board
USB is made up of 68 farmer-directors who oversee the investments of the soybean checkoff on behalf of all U.S. soybean farmers. Checkoff funds are invested in the areas of animal utilization, human utilization, industrial utilization, industry relations, market access and supply. As stipulated in the Soybean Promotion, Research and Consumer Information Act, USDA’s Agricultural Marketing Service has oversight responsibilities for USB and the soybean checkoff. For more information: www.unitedsoybean.org.
About Soybean Transportation Coalition
The Soy Transportation Coalition consists of seven state soybean boards, the American Soybean Association, and the United Soybean Board. The seven participating states encompass 63 percent of total U.S. soybean production. In addition, the National Grain and Feed Association and the National Oilseed Processors Association serve as ex-officio members on the STC’s board.
The seven participating state soybean boards are: Illinois Soybean Association, Indiana Soybean Alliance, Iowa Soybean Association, Nebraska Soybean Board, North Dakota Soybean Council, Ohio Soybean Council, and South Dakota Soybean Research and Promotion Council. For more information: www.soytransportation.org.
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