CARR'S, an agriculture, food and engineering group based in the U.K., announced Aug. 20 that its wholly owned U.S. subsidiary, AFS Inc., is investing in a newly established joint venture for the production of its patented low-moisture feed block products.
The new joint venture company, to be called ACC Feed Supplement LLC, will be owned 50/50 by AFS and Consumer Supply Distributing LLC (CSD), which is 50% owned by CHS Inc.
ACC will build a low-moisture feed block plant at the CSD premises in Sioux City, Iowa. The plant will have an annual capacity of 12,000 metric tons and will incorporate proprietary processing technology. The new plant will begin production in the second half of 2014.
Carr's chief executive Tim Davies said, "Investing in ACC is in line with our strategic objective of building our share of the U.S. low-moisture feed block market. We are experiencing continuing growth and demand for our patented low-moisture feed blocks both in the U.S. and across all markets. ACC adds to our coverage of the U.S. where CHS and CSD have a significant, nationwide sales and distribution network."
ACC will also add to existing low-moisture feed block plants in Nevada, Oklahoma and South Dakota, increasing AFS's presence in the Central, southern and western U.S. markets.
Previously, Carr's announced in June that, through AFS, it had acquired the business and assets of Western Feed Supplements — a low-moisture feed block manufacturer in Silver Springs, Nev. — from Western Milling, one of California's largest feed manufacturers.
Following that acquisition, Carr's said it planned to invest in a modernization program at Silver Springs to create another state-of-the-art production facility for low-moisture tubs that would supply the West Coast beef and dairy markets.
In June, Carr's also announced that following the successful launch of its AminoMax bypass protein product in the U.S., it would commission a new plant in Lancaster, U.K., to produce the product. The new plant began production in July.
AminoMax has been manufactured at a plant in Watertown, N.Y., that is operated by Carr's Afgritech LLC joint venture. The group said it is expanding production at Watertown to capitalize on the growing demand for the product.
Carr's entered the U.S. feed industry when it acquired AFS in 1997 and formed New Generation Feeds, a low-moisture "big block" company with two state-of-the-art, high-capacity manufacturing plants.
New Generation Feeds operates a plant in Poteau, Okla., to serve the southern market and another plant in Belle Fourche, S.D., to serve the Midwest and western markets. These two facilities are manufacturing the SmartLic brand of cattle supplements.