If you’ve ever driven down South Riverfront Drive in Mankato, you’ve smelled it. That distinct, toasty, slightly earthy aroma. It’s the smell of millions of bushels of soybeans being turned into things you probably use every single day. Most people just see the giant silver silos and the endless line of trucks, but CHS oilseed processing Mankato is actually one of the most massive soybean refining hubs on the entire planet.
Honestly, it’s kind of wild how much happens on that plot of land near Sibley Park. It isn’t just a "factory." It’s a 24/7 engine that links Minnesota farmers to global dinner tables and West Coast fuel pumps.
Why the Mankato Refinery is Growing So Fast
A couple of years ago, CHS dropped about $60 million into this place. Why? Because the world is suddenly obsessed with renewable diesel. For decades, the Mankato plant mostly focused on food—think salad dressings and frying oil. But now, states like California are hungry for low-carbon fuel, and soybean oil is the "gold" they need.
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By the time the dust settled on the expansion in 2023, the plant had jacked up its refined soybean oil production by over 35%.
It’s a huge shift.
Joe Smentek from the Minnesota Soybean Growers Association once mentioned that more beans get crushed here daily than almost anywhere else. That’s a heavy title for a town of 45,000 people. The facility works in tandem with its sibling plant in Fairmont. Basically, Fairmont does the initial "crush," and then a fleet of trucks hauls that crude oil up to Mankato to be polished and refined into high-grade products.
What They Actually Make (It’s Not Just Oil)
People think "oilseed processing" and imagine a giant bottle of Wesson. It’s way more technical than that. The Mankato site is a Swiss Army knife of soy.
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- Refined Vegetable Oil: This is the big one. Under brands like Savorysoy®, they produce oil that’s bleached, deodorized, and ready for industrial food use.
- Soy Flour: They run one of the only large-scale soy flour mills in the country. If you’ve ever eaten a high-protein energy bar or certain baked goods, there’s a decent chance the flour came from Mankato.
- Lecithin: This is the "glue" of the food world. It keeps chocolate from separating and makes bread dough easier to handle.
- PlastiSoy®: This is the cool, nerdy side of the business. It’s an epoxidized soybean oil used to make things like medical tubing, food wrap, and even gaskets for your fridge.
- Soybean Meal: After the oil is squeezed out, you’re left with the solids. This high-protein meal is the primary fuel for the regional pork and poultry industry.
The economics are fascinating. About 80% of a soybean ends up as meal, while only 20% is oil. For years, the oil was almost a byproduct. Now, with the renewable energy boom, the "tail is wagging the dog." The demand for oil is so high that the industry is actually trying to figure out what to do with the "mountain of meal" left over.
The Human Impact and History
This isn't some new corporate takeover. The site has been crushing beans since the 1930s. It used to be Honeymead Products Company before it eventually became part of the CHS cooperative system.
Being a co-op matters.
Unlike a typical corporation where profits go to distant shareholders, CHS is owned by the farmers themselves. When the Mankato plant has a good year, that money flows back to roughly 75,000 producers and 900 local cooperatives. It’s a closed loop.
Around 240 people work at the Mankato facility. But the ripple effect is bigger. A study from Ernst & Young suggested that for every one job at the plant, another three are created in the community—truckers, mechanics, equipment suppliers, and even the local diners where drivers grab coffee.
It hasn't always been perfect
You can't talk about a plant this size without mentioning the footprint. Back in the 60s, there was a massive spill—about 3.5 million gallons of oil—that made its way into the Blue Earth and Minnesota Rivers. It was a mess.
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Today, the regulatory environment is night and day compared to those eras. The plant is under constant third-party audits for food safety and environmental compliance. They handle chemicals like n-Hexane (used for extraction), which means the EPA keeps a very close eye on their "Total On-site Releases."
How to Work with CHS Mankato
If you’re a producer or looking to get into the logistics side, you’ve gotta know how they operate. They don't just "take grain" whenever.
- Check the Cash Bids: Prices fluctuate by the minute. Most local guys use the CHS apps or websites to watch the "basis"—the difference between the local price and the Chicago Board of Trade.
- Delayed Price (DP) Programs: This is a common move. Farmers deliver the beans now but "price" them later, hoping the market goes up. Just watch the storage fees; they can eat your margin if you wait too long.
- Logistics: During harvest, the line of trucks can stretch way back. If you’re hauling, you need to be synced with their "Spot Delivery" notices to avoid sitting in the cab for four hours.
What’s Next for the Facility?
The future of CHS oilseed processing Mankato is tied directly to the "green" transition. As more renewable diesel plants come online across the Midwest, the "demand pull" for soybean oil is only going to get tighter.
We’re likely to see even more automation in the refining process and perhaps a shift toward even higher-protein meal variants to satisfy the export market in Latin America and Southeast Asia.
If you want to stay ahead of the curve, keep an eye on the state-level "Low Carbon Fuel Standards." As more states adopt these, the value of the oil coming out of Mankato is only going one direction.
Actionable Next Steps:
- For Growers: Compare the Mankato cash bids against the Fairmont and Savage terminals weekly. Sometimes the "haul distance" cost is offset by a significantly better basis at the refinery.
- For Investors: Watch CHS preferred stock (CHSCP) as a bellwether for how the cooperative is handling the shift from food-grade to fuel-grade oil demand.
- For Locals: If you’re looking for work, the expansion has created a steady need for process technicians and industrial maintenance roles that pay well above the regional average.