Biomass harvest companies Pacific Ag Solutions, PowerStock merge

By PacificAg | May 23, 2013

Sister companies Pacific Ag Solutions and Pacific PowerStock, both innovators in agricultural supply chain logistics, have merged to become PacificAg. The merger creates the largest agricultural residue and hay harvesting business in the US, with operations in seven states and the largest fleet of biomass harvesting equipment in the U.S.

Bill Levy, founder and CEO of PacificAg, noted, "We have always served two important markets: demand for forage crops for livestock to feed a growing global middle class and dynamic growth in the uses and demand for agricultural biomass to replace petroleum and other fossil sources in the creation of bioenergy, cellulosic biofuels, bio-based chemicals and other bio-based products. Originally we felt two sister companies were necessary to meet the demands of these distinct marketplaces. Years of experience developing and operating feedstock supply chains for both domestic and export forage and for bioenergy markets have demonstrated that in practice, serving these distinct customer groups involves leveraging the same equipment fleets, complementary operational and logistics skills and processes. The synergies now apparent far outweigh any benefits of operating the former companies separately. Operating as one company will enable us to be more responsive and more competitive to meet the growing demand for agricultural biomass at commercial scale.”

The new PacificAg becomes the largest player in supply chain logistics to meet growing demand for agricultural biomass. The Company’s dedicated supply chain model, which depends on multi-year supply agreements and close, formalized cooperation from one end of the chain to the other, provides the most effective way to reduce the risks posed by cost, quality and supply volatility. Its proprietary PowerStock Pro supply chain management system provides a turnkey tool for managing every aspect of the complex feedstock supply chain from grower contracts to GIS enabled field mapping to equipment deployment, harvest results and inventory management.

As a result, the company has built the largest grower network in the U.S. for agricultural biomass from which PacificAg supplies 12 different biomass crops for both forage and bioenergy. Now operating in seven states, PacificAg has experienced rapid growth over the last three years and expects to double again by the end of 2015. Its experienced management team has a combined 75 years’ experience in developing new markets and supply solutions for a growing array of industrial applications for agricultural biomass.