CHS, Ruralco jointly own Australia's Agfarm

CHS, Ruralco jointly own Australia's Agfarm

CHS Inc., the nation's leading farmer-owned business and a global energy, grain and food company, announced that it has invested in Agfarm, an Australia-based grain origination and marketing company.

CHS and Ruralco Holdings Ltd. based in Sydney, Australia, will each own 50% of Agfarm.

Since 2009, Agfarm has been a part of the Ruralco Group, which operates a variety of businesses that specialize in providing rural customers with products and services in merchandise, fertilizer, seed, wool, livestock, real estate, risk management, water, grain, finance and insurance. In the fiscal half ended March 31, the grain business contributed 5% of Ruralco's $105.5 million gross profit.

Agfarm is an Australian agribusiness that works with growers to manage the marketing and sale of their grain.

The Agfarm name and management structure will not change. Agfarm has 38 employees in eight offices in Australia, and founder Bob McKay will continue to serve as chief executive officer.

"CHS is committed to investing for the long term in the Australian market so that Agfarm growers benefit from even stronger connections to the growing global demand for high quality grains and oilseeds," said Rick Browne, CHS Ag Business senior vice president, Asia-Pacific. "This partnership aligns with CHS strategic growth initiatives that add value to member-owners by competitively linking global producers with buyers and consumers."

CHS is not the only U.S. company competing for Australian grain. Archer Daniels Midland is working to purchase Australian grain handler GrainCrop, although the Foreign Investment Review Board has yet to approve the deal.

Volume:85 Issue:31

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