PORTFOLIO of Member Opportunities
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PORTFOLIO of Member Opportunities 1996 through June, 2013 KAAPA’s mission is to seek and acquire opportunities that can increase member profits and net worth while promoting agriculture in general; which may be accomplished by its members producing for, or investing in, value-added ag projects. KAAPA’s vision is to be a highly successful farmer-based alliance that is recognized throughout all of the grain belt, and beyond, as being an innovative organization that seeks, creates, and promotes value-added agricultural opportunities, both for its members and for agriculture in general. KAAPA Cooperative P. O. Box 1301 Kearney, NE 68848 308-234-2712 [email protected] www.kaapacoop.com BACKGROUND In 1994, Leadership Kearney, a volunteer group which seeks economic development opportunities for the city of Kearney, Nebraska, identified a need for an agricultural based cooperative group. In part, this came from the unsuccessful bid for the white corn Frito Lay plant to locate in the Kearney area. It was recognized that it would have been beneficial to have a group that could ‘talk the talk and walk the walk’ of agriculture and that having such a group may have led to Frito Lay deciding to locate in Buffalo County. At the “Community Development Conference” held in April of 1994, the creation of an ag development cooperative was one of the items identified as a priority for the community of Kearney and the surrounding area. From that meeting an Ag Development Task Force was appointed. This Task Force began its efforts with organizing a group to ’speak as one voice’ along with setting up test plots from which quality data would be collected to promote the quality grains produced in the area. Also in the spring of 1995 the acronym ‘KAAPA’ was born when the group arrived at naming this Task Force the “Kearney Area Ag Producers Alliance.” Koch Industries provided the initial capital to launch KAAPA (over $100,000), and with those funds the group organized a Board of Directors and began recruiting members that paid dues of $100 per year. They hired a General Manager in 1996, the year of KAAPA’s official creation, and began to focus on “identity preserved” grain contracts. As well that The KAAPA Logo year, they began work with Heartland Fibers which was promoting a At a quick glance the significance of the KAAPA logo may not be technology that converted corn stover to paper pulp. KAAPA proceeded apparent. Yet, if you have ever to raise approx. $10MM for the project, acquire contracts for the stover seen an aerial view of the corn belt, its meaning will become very clear. and seek a building site. What seemed at the time to be a failure because the technology could never fulfill the initial objectives and the project was The superior quality and reliable scratched, turned into the creation of a solid foundation of experience for production of crops in Nebraska is due in large part to irrigation, and KAAPA. What the group learned through the project provided it with the more specifically center pivot confidence that it was on the right track with its mission and objectives. irrigation. The logo represents sections of farm ground, in greens In 2003, this confidence led KAAPA to create one of the most successful and golds for corn and other crops, businesses in Nebraska, KAAPA Ethanol. with the circles created by center pivots. The blue is for the In 1998, high oil corn was planted and a total of 750,000 bushels reservoirs of water, which is the life blood for crop production. The were delivered to Japan in 1999. Soon thereafter, in early 2000, the winding “S” represents the Platte group started its first discussions about building and operating an ethanol River and Ogallala Aquifer — the sources of that precious irrigation plant. From 2000 through 2003, the entire KAAPA Board led by a group water. of approximately 6 individuals worked tenaciously on the planning, engineering, and development of the project, including raising capital in excess of $28MM for the plant. In November 2003, KAAPA Ethanol had its Grand Opening and filled its first rail car with ethanol. Since then, it has repaid, many times over, its initial investors their original investment. The plant operates successfully yet today and is recognized as a leader in the ethanol industry. During those same years, KAAPA supported efforts to attract dairies to central Nebraska and those efforts resulted in three state-of-the art dairy facilities being started in and around Buffalo County. Fast forward to 2012 and you can review this booklet to see the projects that were presented to KAAPA for its consideration, projects in which it invested certain resources such as time, money and effort, projects that were fully developed, and projects that are currently being considered for either managerial or financial support. With nearly 450 members throughout Nebraska, KAAPA membership represents hundreds of thousands of acres of farm ground, and it continues to fulfill its original mission of “enhancing the bottom line” of those members through value-added ag opportunities. The “KAAPA” family now includes KAAPA Ethanol, KAAPA Grains, KAAPA Country-Adventures, KAAPA-MEX, KAAPA Investments , KAAPA Investments II, and KAAPA Aqua Ventures Alliance. Since inception, KAAPA has secured nearly $50,000,000 in capital. It has often been said that KAAPA is ahead of its time as it has supported projects and concepts long before they were even on the radar screen of the general public. Perhaps that statement is true . KAAPA’s original project in 1996 was to add value to biomass (corn stover) and now, in 2013, biomass is being sought by a large number of companies because the product is recognized to have a high value in a multitude of applications. Projects that KAAPA is reviewing and considering today will shape the future of agriculture. KAAPA is the original “KAAPA” organization and is generally referred to as KAAPA Cooperative because it is owned by members and operates for its members, while all of the entities it has created operate as ‘for profit’ ventures. You can visit www.kaapacoop.com to read more up-to-date information, learn the value of becoming a member, Entities Under Consideration: KAAPA Biomass and how you can join KAAPA Futures Fund KAAPA. KAAPA Bio-based Plastics KAAPA Investments III, LLC TABLE OF CONTENTS Membership Opportunities PURSUED . KAAPA Fibers, LLC; Dairy Attraction/Expansion . 2 Tofu Soybeans, High Oil Corn, Yellow Field Peas . 3 KAAPA Ethanol, KAAPA-Mex; Bakery . 4 Lutein Extraction, KAAPA Country-Adventures . 5 New Market Tax Credits, Bio-Diesel . 6 Rivas Technologies, Molecular Fuel Injection . 7 Energy Grains Biomass, KAAPA Investments LLC, KAAPA Investments II, LLC . 8 Furfural, DDG Range Cubes . 9 Laurel BioComposite, Rare Earth Solar . 10 KAAPA Aqua Ventures Alliance, LignoTech, LTD . 11 Membership Opportunities CONSIDERED . Access Venture Partners, Ag Development Center, Agristand, Alfalfa America, All Fuels, Ammonia Project, Aratana Therapuetics, Aronia Project . 14 Area of WY Waste to Energy Plant, Biorefining, Blue Water Satelite, Central States Marketing Group, Clean Flex, Cropmetrics, Eagle Technologies LLC, Fairbury Plastics . 15 Feedlogic, Flour Mill Project, Food & Ag Discovery Center, Gryphon Wireless, IPC, Krystal Planet, Machinerylink/FarmLink, Mexico Grain Export Project . 16 MFS, Natural Earth Solutions, Naturally Scientific, Nebraska Organic, Oklahoma Hydrogen Gas Technologies, PEI, Peptide Production of Algae, Power Energy Fuels . 17 Proman PTO LLC, RC Fuels Inc, Renew Source LLC, Responsible Transportation, Rolling Plains Holding Company, Show Me Green Coal Coop, Southwest Nebraska Dairy, Sparks Companies Inc . 18 Thunderhead Brewing, Turkey Growers Project, Western Area Power Authority, Westland Resources LLC, Wind Energy Project, WyoComposits LLC . 19 Membership Opportunities EMERGING . Smart Yield . 22 LignoTech, Ltd. 23 NU Bio-Fibers Initiative . 24 Misc. Project Ideas . .. 25 KAAPA has nearly 450 members who represent hundreds of thousands of acres of farm ground in both small and large farming operations. As a member, you will be informed of the investment and production opportunities such as those presented in this Portfolio. You participate in the projects of your choice and at the investment level with which you are comfortable, as there are no minimum participation requirements. The annual membership dues are $250. These dues provide for the overhead and operations of the office, staff, and basic development efforts. Anyone can join KAAPA, either as a “Producer Member” or as an “Associate Member.” Only Producer Members are able to serve on the Board of Directors which assures members that KAAPA projects are related to value-added agriculture or in some manner benefit its members. KAAPA Cooperative P. O. Box 1301 Kearney, NE 68848 308-234-2712 [email protected] Whereas it may be desirable for the reader to learn more about a project or the names of the companies involved in some of the projects listed herein, Non- Disclosure Agreements and other factors prevent us from providing all of the names and details. KAAPA Cooperative has been successful in attracting a number of grants from local, state and federal agencies. These are not listed in the report. The total grant awards received is nearly $1,000,000. 1996 – Technology Failed A Minnesota company proposed a partnership with KAAPA to design, construct and finance a manufacturing plant in Buffalo County, Nebraska, that would use corn stover as the fiber source for producing specialty pulp for making paper and paper products. With corn stover—the raw product—readily available from the major corn growing area in central Nebraska and the entire production—the finished product— of the first plant committed under an allocation basis to a select group of paper mills, it seemed that the project was on the right track for completion and success.