OVS Builds Fertilizer Mixing Plant

Reprinted from article source:
NewsRegister.com, McMinnville, Oregon 

Published: May 17, 2008

By YVETTE SAARINEN
Of the News-Register

OVS, an agricultural chemicals and supplies operation on St. Joseph Road near McMinnville, used to send field men to work with farmers who were having soil or crop problems. Once the staff worked out a solution, it had to send the farmers elsewhere to buy the necessary products.

Partners Kevin Chambers and Dean Forseth felt they needed their own fertilizer plant. And now they have one.

They were able to sign a lease-option on 1.5 acres across the road, complete with a pair of storage buildings.

 
 Ken Wessesl and Chad Moye at OVS' new
 liquidfertilizer plant near McMinnville
 Marcus Larson/News-Register


They poured concrete floors under the larger building, which covers 5,000 square feet, and re-roofed it. Then they invested about $500,000 in equipment.

The custom fertilizer plant went on line in March. According to Ken Wessels, assistant manager of OVS' Ag Supplies Division, it's one of only two in the northern Willamette Valley that converts dry fertilizer into liquid form.

The partners are using the 4,000-square-foot building next door for storage. That ensures all company supplies and equipment will be weather-protected, Wessels said.

The fertilizer plant mixes products for specialty crops like grapes, blueberries and hazelnuts. It is certified for use by organic and biodynamic farmers, Wessels said.

After taking samples from a farm, OVS creates a custom blend to solve a pest, disease or nutrient problem, all the while striving to reduce the input of fertilizer and save the farmer money.

A massive hot water heater pumps liquid into two 7,000-gallon tanks holding the dry chemicals. It takes two hours and 3 million BTUs to heat the mixture to between 140 and 150 degrees, at which point it's ready for storage or shipment.

The tanks sit on computerized load cells, or scales, that indicate exactly how much raw ingredients from nine different storage tanks go into the mix. They can turn out batches of five to 275 gallons.

Some of the materials arrive by rail from Washington and Canada, Wessels said. A nearby rail drop allows the company to save $60 per ton in shipping costs.

Eventually, the company hopes to secure its own rail drop on site, he said

Right now, OVS and other members of the industry worldwide, are dealing with an extremely short supply of sulfur. That has sent prices soaring.

Sulfur products are particularly vital to organic and biodynamic farmers, Wessels said.

Chambers said he recently met with the president of Indian Sulfur Mills at the Portland airport. He was told the global demand for sulfur has reached 35 million tons, but production capacity runs only about 31 millions tons.

The increase in demand stems largely from the growing use of sulfur in fertilizer blends and a boom in agricultural production in China, he said.

Chambers said the industry is responding, and the supply of micronized sulfur should be back in balance in a few months.

Until then, he said, very little can be had in the United States. And when it can be had - four containers are due into Portland around June 20, for example - it is commanding a pretty price.

Elemental sulfur from refineries has historically run about $70 a ton. Chambers said it now is going for $770 a ton, and another price hike may be in the offing.

Wessels said OVS has been working with farmers to develop alternatives.

OVS evolved from Oregon Vineyard Supply, launched by the late Mark Benoit in Lafayette in 1995.

Chambers, a schoolmate of Benoit's, came on board to help him out. He assumed growing responsibility when Benoit fell ill.

Chambers and Forseth subsequently bought the business in partnership with their employees. And they have swelled revenues from $3 million a year to $30 million.

OVS also sells and services tractors, farm implements, ATVs and power equipment.

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