Carr's expands U.S. low-moisture feed block business

U.K.-based Carr's is investing in a new joint venture to produce low-moisture feed block products, expanding Carr's existing U.S. business.

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 50% owned by AFS and Consumer Supply Distributing LLC, which is 50% owned by CHS Inc.

ACC will build a low-moisture feed block plant at the CSD premises in Sioux City, Iowa, with an annual capacity of 12,000 metric tons, incorporating proprietary processing technology. The new plant will begin production in the second half of 2014 and will supply AFS, CHS and CSD customers.

CHS is a leading global agribusiness owned by farmers, ranchers and cooperatives across the U.S. and supplies energy, crop nutrients, grain marketing services, livestock feed, food and food ingredients.

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' 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 (WFS), a low-moisture feed block manufacturer in Silver Springs, Nev., from Western Milling, one of California's largest feed manufacturers, for a cash consideration of £0.6 million.

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, supplying 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 commissioning a new AminoMax plant in Lancaster, U.K. The new plant began production in July.

AminoMax has been successfully manufactured in the USA at the group's plant at Watertown, N.Y. The Group is in the process of 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.

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