Cargill, Agrex To Form Joint Venture
Cargill AgHorizons, a business unit of Cargill, and Agrex Inc., a wholly owned subsidiary of Mitsubushi Corp., plan to form AC Grain, LLC, a 50-50 joint venture that will own and operate Cargill’s grain elevator in Dana, IN.
The joint venture will make significant improvements to the Dana facility aimed at serving farmer customers. To be completed by harvest in 2013, the modernization project could eventually more than triple the unload capacity and warehouse space for corn, soybeans and wheat originated at Dana. Rail track space will be increased from a 65-car capacity to a 90-car capacity, and rail load capacity will be increased from 20,000 bushels per hour to approximately 50,000 bushels per hour. Grain drying capacity will be quadrupled. While the work plan is still under development, the total investment is expected to exceed $20 million.
“For our farmer customers, these upgrades will reduce unloading times, provide more storage space and expand the marketplaces for the delivery of grain,” said Doug Childers, regional Farm Services Group leader for Cargill. “For our customers who process corn and soybeans, we will strengthen our ability to take care of their needs.”
The Dana facility currently supplies corn to processors in the southeast U.S. and also is seeing growing demand from ethanol plants in Indiana and Ohio. Soybeans are sent mainly to Cargill’s oilseed processing facilities in the southeast.
Hiroshi Fukuchi, president and CEO of Agrex, said: “For the Dana marketplace, the joint venture will provide additional outlets through both Agrex’s export terminal in Mobile, AL, and the domestic sales channels through our office in Bowling Green, OH. These outlets will provide new marketplaces and contribute to the local farming community.”
(Source: Indiana Ag Connection)