Perdue AgriBusiness has entered into an exclusive agreement with Osage Bio Energy to source barley to operate Osage's first barley-to-ethanol bioprocessing facility. Perdue, a leading grain supplier in the Southeast and Mid-Atlantic, is committed to working with local farmers to supply Osage Bio Energy with its barley needs for the Appomattox Bio Energy plant in Hopewell, Va., the first of its kind on the East Coast.

“We are thrilled to be working with Perdue AgriBusiness; their partnership validates our idea that this region is ready to revive the market for barley,” said Craig Shealy, president and CEO of Osage Bio Energy. “Perdue AgriBusiness is committed to working with local farmers to help make our goal of feeding our plant with locally grown barley a reality.”

Osage Bio Energy is creating a new agricultural economy for barley. The company will use barley as its primary feedstock in ethanol production, creating a viable and consistent local market for the crop. Osage Bio Energy also will produce a high-quality barley protein meal animal feed, along with renewable fuel pellets and food grade carbon dioxide.

Barley offers local growers a number of benefits. As a winter crop, it can be planted in fields that might otherwise be unused and provides growers with an incremental cash crop. Additionally, barley enables high soybean yields when double-cropped with soybeans. Osage Bio Energy’s goal is to procure all of its barley feedstock from within 100 miles of its facilities.

“Osage Bio Energy has a strong business model dedicated to creating opportunities for local agriculture,” said Dick Willey, president of Perdue AgriBusiness. “We are excited to play a role in building the local barley market, and look forward to working with the farming community to provide Osage Bio Energy with the barley it needs to create both fuel and livestock feed.”

Perdue AgriBusiness is launching a barley contracting program for the 2009-2010 crop to supply the Appomattox Bio Energy plant, with plans to contract up to 30 million bushels. Growers interested in contracting barley for Osage Bio Energy should contact Steve Norris at Perdue AgriBusiness at steve.norris@perdue.comor 410-726-9104.