Michigan’s soybean industry is an important contributor to the state’s agricultural economy, connecting farmers with markets for food, animal feed, renewable fuels, and other products. At the center of that supply chain are Zeeland Farm Services, Inc. (ZFS) and its affiliate, ZFS Ithaca, LLC, whose investments in soybean processing have expanded opportunities for Michigan farmers while supporting jobs, rural communities, and domestic manufacturing.
Founded in 1950, ZFS is a family-owned agribusiness headquartered in Zeeland, Michigan. What began as a small produce and grain transportation business has grown into a diversified agricultural operation providing soybean processing, grain marketing, storage, transportation, specialty seeds, and agricultural ingredients.
Together, ZFS and ZFS Ithaca support approximately 375 jobs in western and mid-Michigan, demonstrating how investments in agricultural infrastructure can generate economic opportunities beyond the farm.
Expanding Markets for Michigan Soybean Farmers
ZFS helped transform Michigan’s soybean industry in 1996 when it opened the state’s first large-scale soybean processing facility in Zeeland. The investment provided farmers with an additional regional market for their crops while supplying locally processed soybean meal and other ingredients to livestock and poultry producers.
The company’s processing capabilities expanded significantly in 2020 with the opening of ZFS Ithaca’s soybean crushing facility in central Michigan.
With an annual processing capacity of approximately 45 million bushels and 6.8 million bushels of grain storage, the Ithaca facility more than quadrupled Michigan’s soybean processing capacity. The investment also created approximately 75 jobs and expanded opportunities for farmers to market soybeans closer to where they are grown.
Combined, the Zeeland and Ithaca facilities have the capacity to process approximately half of Michigan’s annual soybean production.
For farmers, nearby processing facilities can mean reduced transportation distances, additional marketing options, and greater regional demand for their crops. These benefits extend throughout the agricultural economy, supporting trucking companies, grain elevators, equipment suppliers, and other businesses serving Michigan’s farming communities.
Connecting Michigan Agriculture to Biodiesel Production
Beyond traditional food and animal feed markets, soybean processing supports the growing renewable fuels industry.
When soybeans are crushed, they produce two primary products: soybean meal, used extensively in livestock and poultry feed, and soybean oil, which can be used in food manufacturing, industrial applications, and renewable fuel production.
ZFS’s soybean crushing operations contribute to the supply of soybean oil available to biodiesel manufacturers, helping connect agricultural production with domestic renewable fuel markets.
Michigan biodiesel producers, including W2Fuel in Adrian, represent another important link in this agricultural value chain. W2Fuel manufactures biodiesel, a renewable diesel fuel that can be produced from soybean oil and other qualifying fats and oils.
By converting agricultural and other renewable feedstocks into transportation fuel, biodiesel manufacturers create additional markets for soybean oil while supporting manufacturing, fuel distribution, and related economic activity.
This relationship provides an important benefit for soybean farmers. Biodiesel production creates demand for soybean oil, complementing the established market for soybean meal. Having multiple markets for the products derived from each bushel helps strengthen the overall value and marketability of soybeans.
Biodiesel also offers practical benefits for the agricultural and transportation sectors that help sustain these markets. The fuel can be blended with petroleum diesel and used in many existing diesel engines, allowing fleets to reduce lifecycle greenhouse gas emissions without replacing their equipment.
Agricultural Processing and Biodiesel Support American Jobs
The economic contributions of soybean processing and biodiesel production extend well beyond individual facilities.
According to a 2025 economic impact study commissioned by Clean Fuels Alliance America and conducted by GlobalData, the U.S. biodiesel and renewable diesel industry supported approximately 107,400 jobs, $6 billion in wages, and $42.4 billion in economic activity in 2024.
The study examined employment and economic contributions throughout the supply chain, including farming, feedstock processing, renewable fuel manufacturing, transportation, and distribution.
Among its findings:
- 30,600 jobs were supported by oilseed production, generating approximately $15.3 billion in economic activity.
- 8,600 jobs were supported by oilseed processing, generating approximately $3.9 billion in economic activity.
- 41,500 jobs were supported by biodiesel and renewable diesel production, generating approximately $19.9 billion in economic activity.
These national figures illustrate how demand for renewable fuels creates economic opportunities across multiple industries, including the agricultural operations that supply the raw materials used in fuel production.
In Michigan, companies such as ZFS and ZFS Ithaca provide essential agricultural processing infrastructure, while biodiesel manufacturers such as W2Fuel help connect renewable feedstocks with fuel markets.
Together, these complementary industries support economic activity that begins on the farm and extends through processing, manufacturing, transportation, and fuel distribution.
Supporting Farmers Beyond Soybean Processing
ZFS and ZFS Ithaca also provide agricultural services that help Michigan farmers manage their operations and reach domestic and international markets.
Their grain divisions purchase and market soybeans, corn, and wheat while offering marketing and risk-management resources. Grain elevator operations provide receiving, testing, storage, blending, and shipping services that help producers move their crops efficiently.
Through their relationship with Zeeland Freight Services, the companies also support the transportation of soybean meal, hulls, and other agricultural products, including on-farm grain pickup.
Additional services include specialty and non-GMO seed varieties, agricultural ingredients, and feed products for livestock and poultry operations.
This integrated approach connects farmers with agricultural inputs, processing infrastructure, transportation services, and markets for their crops.
Investing in Michigan’s Agricultural Future
The connection between soybean farming, agricultural processing, and biodiesel manufacturing demonstrates how Michigan’s agricultural resources contribute to multiple sectors of the economy.
Investments by companies such as ZFS and ZFS Ithaca expand processing capacity, strengthen regional markets, and support employment in communities where agriculture remains an important economic driver.
At the same time, demand for soybean oil in biodiesel production provides an additional market for a valuable agricultural commodity, helping diversify opportunities for farmers and supporting domestic fuel manufacturing.
As Michigan’s agricultural and renewable fuels industries continue to evolve, maintaining strong connections between farmers, processors, and end users will remain important to the state’s economic competitiveness.
From the soybean field to the processing facility and ultimately to the fuel tank, Michigan agriculture plays an important role in producing the food, feed, and renewable fuels used throughout the United States.