ZEELAND, Mich. — Zeeland Farm Services, Inc. has purchased a 435-acre partially-built ethanol facility in Ithaca, Mich. ZFS President Cliff Meeuwsen said the company acquired the site as a vacant piece of property, not as an ethanol plant, with hopes of developing it into a grain processing and/or grain handling facility.
Other options, he said, may include a fertilizer facility, feed facility or general livestock feed ingredient plant. "We look at it as a good site for a lot of different opportunities," he said. "It’s in a primary agricultural area."
The developer of the former ethanol plant, Liberty Renewable Fuels LLC, halted construction in 2008 and the property was foreclosed on in 2010. It has part of a rail line installed, and includes a partially finished office building as well as about a half-dozen grain bins that are partially completed. Much of the ground is currently rented as cropland.
Meeuwsen said ZFS regards the property "as a primary site for an ag business, and not necessarily an ethanol plant – it could be a number of things. We are looking at all the options right now. There are quite a few options that could go there. It just depends on regulatory issues and what we determine as customer needs."
While ZFS is selling ethanol and biodiesel products, Zeeland’s marketing manager, Beth Westemeyer, said "this should not affect Ithaca discussion. Plans will be made based on economic viability of the site."
Located in North Star Township, adjacent to the city of Ithaca, the property sits in the middle of an agricultural community, with close access to U.S. Highway 27.
"The site has good services to it – natural gas, railroad, truck transportation," Meeuwsen said. "It also has some east-west road access that flows out of farm country."
He said ZFS is "in the middle of due diligence," with the company exploring options for partnerships. "We are also looking at what kind of freight rates we can get."
Meeuwsen said ZFS has invested between $8 million-$10 million in the project thus far, and future development of the site could take a few years.
"Positioning different opportunities on the property could be challenging," he said, because the land has been partially developed. "The issues will be permitting and how long it will take us to get permits. Permitting might even dictate what we can get there."
Paul Gross, Michigan State University extension educator in the central Michigan area, said Zeeland’s development of the site "will be a huge asset for farmers in this part of the state." He said the type of operation established on the site could support new opportunities for producers.
"Obviously it’s going to reduce trucking costs," he said. "There may be potential there for some other opportunities such as grain handling or a specialty soybean processing facility. Depending on what they put in there, it could change the crop mix in the area."
Meeuwsen said the company expects to add a "minimum of 100 employees" at this year-round location, including positions in transportation, accounting, operations and other areas.
ZFS is a family-owned and -operated business with more than 60 years of service to the agricultural and transportation industries. The company handles a variety of agricultural commodities and produces premium soy products that are closely monitored from beginning to end.
ZFS has a long history serving the needs of growers both domestically and abroad. Founded in 1950 by Robert (Bob) G. Meeuwsen as Meeuwsen Produce and Grain, the company was reorganized as Zeeland Farm Services, Inc. in 1977 to provide customers a wider variety of agricultural services.
Bob sold the business to his sons, Cliff, Arlen and Robb, in 1992. That year, the grain storage business was expanded into soybean processing and the transportation division was expanded.
ZFS began exporting its products in 2001. Through the years, its export business has grown to include food-grade soybeans, soybean meal, soybean oil and a wide variety of feed ingredients. Its export sales have continued to grow, including markets in Japan, South Korea, Vietnam, Central America, South America, Taiwan, Indonesia, Malaysia, Philippines and China. In 2010, ZFS was named Michigan Agriculture Exporter of the Year by the state’s Department of Agriculture for its ability to provide high-quality products to international customers.
More than 200 employees, including 12 Meeuwsen family members, work at ZFS. The company operates on renewable energy and builds with recycled materials. ZFS has elevators in four states – Michigan, Wisconsin, Florida and Nebraska – that are all family-owned and -operated.
