CHS, Zen-Noh Form Grain Marketing Joint Venture
The St. Paul, MN-based cooperative has acquired 51% of the Japanese farmer-owned cooperative that supplies primarily wheat and barley to Japan.
May 8, 2012
CHS Inc. (No. 6 on the CropLife 100 retailer rankings), St. Paul, MN, and Zen-Noh, Tokyo, Japan, two of the world's leading farmer-owned cooperatives, have announced CHS has acquired 51% of CZL Ltd., a joint venture company that will supply commodities, primarily wheat and barley, to Japan. The joint venture will be managed from the CZL office in Tokyo.
"CHS and Zen-Noh have been strong trading partners for more than 30 years," said Rick Browne, senior vice president, CHS Asia-Pacific. "This formal agreement strengthens CHS role in adding value to member-owners grain by aligning with these trusted partners in an important Asia-Pacific market."
CZL will market commodities that are primarily sourced in the United States, Canada and Australia, to Japan. Japan is the top global destination for wheat and barley imports. Browne says this partnership is particularly significant for CHS shippers and growers sending grain from the Midwest and Pacific Northwest to export terminals in Kalama and Tacoma, WA., and Portland, OR.
"Strategically aligning grain origination with growing consumer demand is core to our continued global commodities expansion on behalf of our cooperative owners," Browne said.