DDGS is valuable as livestock and poultry feed, and has proven popular in international markets, particularly Asia. But it poses problems when transported in traditional hopper cars, since the feed tends to stick to the bottom of the cars and requires a lengthy and costly effort to extract. It is far easier and less costly to unload and clean DDGS from containers.

At the same time, the market for IP grain is enormous. Processors move some 330,000 metric tons of food-grade soybeans per year in this area, and quality wheat production in the Upper Great Plains is just as huge. Just among several large processors in this area, the aggregate value-added production is 340,000 metric tons annually. The 2007 forecast for soybean feed is 6.2 million metric tons in the Upper Great Plains, and approximately 35 percent of this production is targeted for export. In Taiwan, which has been the largest destination for soybeans shipped in containers, crushers, feed millers and the trucking companies have made substantial investments in equipment to receive bulk commodities by container. The Taiwan industry is encouraging the U.S. to expand its capabilities to load containers.

The aggregate 2007 export transportation market value is approximately $550,000,000 in Western Minnesota and eastern North Dakota and South Dakota and is expected to rise to $650,000,000 by 2011.

The U.S. bulk grain export system works efficiently for commoditized products, but does not service international customers who demand shipments of quality controlled market-specific food or feed grain products or unitized shipments of smaller quantities meeting just-in-time inventory requirements. Minnesota farmers’ ability to realize the higher margins these markets provide are defeated by high-cost, inefficient or unavailable transportation. Rising fuel costs, driver shortages and inadequate container supply exclude highway container transportation as an effective transportation mode.

The North Star Intermodal Solution

North Star Rail Intermodal offers regularly-scheduled, reliable intermodal service to Upper Great Plains farmers, growers and processors at per-ton prices competitive with bulk grain shipping.

Ethanol Producers: Ethanol co-product DDGS are produced at the rate of 1.8 lbs of mash for every gallon of ethanol produced. North Star obviates the DDGS hopper car extraction problem, overcomes a railcar shortage and provides unitized shipping demanded by new markets.

Food Grade Soybean Growers: Strict nutrient classification requirements, high non-GMO purity standards and discerning, decentralized customers worldwide demand containerization. North Star’s planned schedule container service will allow farmers to commit specific acreage to overseas customers to secure customers at higher prices.

Identity Preserved Wheat Suppliers: Whether it is for pasta or bread, noodles or cookies, demanding customers in China, India and Japan segment their wheat requirements according to process, nutrients, flavor and shelf-life. North Star intermodal transportation solution provides identity preservation and just-in-time product management.

Performance Feed Processors: The Norsoy™ process was developed by the Minnesota Department of Agriculture to classify feed-grade soybeans according to amino acid content, allowing Minnesota farmers to capture higher product prices. North Star containers will preserve those margins through the transportation process.