DECATUR, Ill. — Archer Daniels Midland Company (ADM) is building a plant within its Decatur, Ill., processing complex to manufacture “acid oil”, feed ingredient that allows livestock feeders to use less grain in their animals’ feed rations.

ADM plans to invest more than $6.5 million to build the Decatur facility, which will have a production capacity of 800,000 lbs. per day, and will include a new loading station for trucks and railcars. The facility will further refine crude vegetable oil into an acidulated form that improves the nutritional value of animal feeds and can allow livestock feeders to use less grain. The facility is currently slated for completion in the second half of 2014. ADM already produces the ingredient commonly known as acid oil at refineries in Enderlin, ND; Quincy, Ill.; and Windsor, Ontario.

A pound of acid oil contains approximately two-and-a-half times the calories of a pound of corn, ADM said. This allows livestock producers to save costs by substituting acid oil for a portion of the grain normally used in animal feed. Acid oil is also used in industrial applications, such as lubricants. The Decatur facility will produce acid oil from the raw soapstock that is a naturally occurring co-product of the vegetable oil-refining process.

“We at ADM are continually evaluating our process streams to determine how we can provide additional value to our food, feed and industrial customers,” said Ray Bradbury, vice president of the company’s North American Oils group. “We’re confident our integrated business model and deep experience in acid-oil production will enable us to deliver a quality product that’s competitively priced.”