South Dakota Soybean Processors Reports 23.3% Revenue Decline in First Half of 2025

South Dakota Soybean Processors, LLC (SDSP) reported a significant decline in financial performance for the six months ending June 30, 2025, with revenues totaling $228.6 million, down 23.3% from $298.0 million in the same period of 2024. The company experienced a net income of $3.4 million, a decrease of $8.1 million compared to the prior year’s net income of $11.5 million. The decline in revenue and profitability was primarily attributed to lower average sales prices for soybean products, particularly soybean meal and oil, which were impacted by increased domestic supply and reduced demand from the biofuels sector.

In the second quarter of 2025, SDSP's revenues fell to $110.6 million, a 26.1% decrease from $149.7 million in the same quarter of 2024. The gross profit for the quarter was $273,375, a stark contrast to the $8.6 million reported in the previous year. The company’s operating loss for the quarter was $1.4 million, compared to an operating income of $7.1 million in the same period last year. The decrease in gross profit was largely due to declining board crush margins, driven by reduced demand for soybean oil and increased competition from South American producers.

Operationally, SDSP is progressing with the construction of its High Plains Processing plant in Mitchell, South Dakota, which is on track to begin operations in the fall of 2025. The company reported that construction costs remained within budget and that design changes were minimal. As of June 30, 2025, SDSP had approximately $14.3 million in payables related to the construction, with total commitments for construction and acquisition of property and equipment amounting to $77.2 million. The company’s employee headcount remained stable at 30,411,500 capital units issued and outstanding.

The company’s liquidity position has also changed, with working capital decreasing to approximately $38.1 million from $107.8 million a year earlier, primarily due to expenditures related to the new processing facility. Cash flows from operating activities showed a significant outflow of $38.1 million, compared to an outflow of $3.1 million in the prior year. In contrast, cash flows from financing activities increased to $128.9 million, driven by new borrowings to support construction and operational needs.

Looking ahead, SDSP anticipates a potential recovery in demand for soybean oil, particularly with the federal government’s proposed Renewable Volume Obligations expected to boost biofuels demand starting in late 2025. The company is also monitoring legislative changes that may improve the competitiveness of domestic soybean oil against imported feedstocks. Despite the current challenges, SDSP remains focused on completing the High Plains Processing plant and adapting to market conditions to enhance its operational performance.