Successful Joint Ventures of South Dakota Soybean Processors

1
Successful Joint Ventures of South Dakota Soybean
Processors

• Rodney Christianson, CEO
• South Dakota Soybean Processors
• Michael Boland and David Barton, case writers
• Arthur Capper Cooperative Center
• Kansas State University
• Funding provided by a cooperative agreement with
• USDA RBCS

2
Motivation

• SDSP has grown considerably since 1996.
• The case describes the industry environment and
  how SDSP adapted to changes in its industry over
  the past five years.
• Main issue in the case is what to do when SDSPs
  major soybean oil customer no longer needs SDSPs
  oil.

3
Objective

• The objective of this case and discussion is to
  describe the options considered by SDSP and the
  resulting alliances that SDSP has undertaken in
  recent years.

4
Strategic Alliances

• Find new use for soybean oil
• Achieve economies of size in soybean crushing
• Vertically integrate further
• Find new customers
• Build an oil refining plant

5
Find new use for soybean oil

• What can you tell us about SoyOyl?
• What is it?
• How did you find out about it?
• What is your relationship with its owners?

6
Achieve economies of size in soybean crushing

• What can you tell us about Minnesota Soybean
  Processors?
• What is your relationship with them?
• How is it progressing?

7
Vertically integrate further

• How is the business plan for alternatives such as
  soy diesel or soy proteins coming along?
• Can you talk about what you have found from your
  USDA VADG grant results?

8
Find new customers

• How did you find a new customer?
• What does that relationship look like?

9
Build an oil refining plant

• Why did you decide to acquire an oil refinery?

10
Future

• What does the future look like for SDSP?