| Perdue Corporate
Communications
Aug. 24, 2006
FOR IMMEDIATE RELEASE:
Perdue Incorporated Announces Formation of Perdue BioEnergy
LLC
SALISBURY, MD (June 16, 2006) – 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.
According to the American Soybean Association, production of biodiesel
fuel has grown from 2 million gallons in 2000 to more than 150 million
gallons projected in 2006. Today, there are 65 operational biodiesel
plants with 50 more under construction. The Renewable Fuels Association
reports that 97 ethanol plants have a combined production capacity
of nearly 4.5 billion gallons a year. There are 35 ethanol plants
and nine expansions under construction with a combined annual capacity
of more than 2.2 billion gallons.
“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.”
Perdue Farms Grain & Oilseed Division purchases corn, soybeans,
wheat, milo and barley from farmers and dealers throughout the Mid-Atlantic
and Midwest regions. In addition to its import/export facility in
Chesapeake, Va., the Division manages and operates more than 40
grain elevators, transload facilities and a fleet of railcars and
barges.
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
in Delaware, Florida, Georgia, Indiana, Kentucky, Maryland, New
Jersey, New York, North and South Carolina, Pennsylvania and Virginia
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.”
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.”
About Perdue
PERDUE® is the #1 brand of fresh chicken in the Eastern United
States. Ranked third in sales in the poultry industry, Perdue Incorporated
is a leading international food and agriculture business providing
quality products and services to customers in more than 40 countries.
Privately held and family-run for three generations, the company
employs more than 20,000 associates and partners with 7,500 independent
farm families -- all who share in the commitment to quality, service
and reliability that has guided the company since its founding in
1920.
Perdue Farms Grain & Oilseed Division procures, processes and
merchandises ingredients for the feed, food, pet food, fertilizer
and fuel markets. Its products include grains, soy products, protein
products and organic fertilizer recycled from poultry litter.
For more information, visit www.perdue.com.
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