CARGILL and Concord Grain Inc. announced that they have formed a 50/50 joint venture to own and operate a 110-car BNSF shuttle-loading grain elevator in Aberdeen, S.D.
Under the joint venture, Concord Grain LLC will operate the newly built grain elevator, which has 2.5 million bu. of storage space, an unloading capacity of 60,000 bu. per hour and a loadout capability of 80,000 bu. per hour.
"In recent years, the area has seen large increases in production driven by increasing productivity, along with acreage shifts to corn and soybeans," said Todd Ochsner, owner of Concord Grain Inc. "The Aberdeen facility is in a strategic location to support growing export demand through the Pacific Northwest. By teaming up with Cargill, we'll have the benefits of local ownership and the global perspective and expertise that Cargill brings."
Dennis Inman, a regional manager for Cargill's grain business, said Cargill has about a half-dozen joint ventures primarily with farmer-owned cooperatives, but this is the first with an individual producer.
"Cargill has been working with Todd for many years, even before he started building the elevator," Inman said. "Todd has had a great vision for serving the area grain producers as he developed and built the facility. We're excited to team with him to deliver on that vision."
Inman added, "Given the strong crop production in the area and strong demand from the Pacific Northwest, we are looking forward to working with this new venture."
In addition to the existing storage capacity, the joint venture intends to add 2 million bu. of temporary storage space.
Inman said through a licensing agreement, the joint venture will also offer Cargill grain marketing and risk management solutions.