Sector News

ADM and Cargill to launch a soybean joint venture in Egypt

February 26, 2018
Food & Drink

Archer Daniels Midland (ADM) and Cargill have reached agreement to launch a joint venture to provide soybean meal and oil for customers in Egypt.

The venture will own and operate the National Vegetable Oil Company soy crush facility in Borg Al-Arab along with related commercial and functional activities, including a separate Switzerland-based merchandising operation that will supply soybeans to the crush plant.

Cargill is currently expanding the plant from 3,000 metric tons to 6,000 metric tons of daily crush capacity. The site will be able to produce higher-protein soybean meal while reducing the need for soybean meal imports into Egypt.

The joint venture will be managed as a standalone entity consisting of equal ownership by ADM and Cargill, with a management team reporting to a board of directors appointed by the two parent companies.

Its assets will not include Cargill’s grain business and port terminal in Dekheila, or the ADM-Medsofts joint venture at the Port of Alexandria. Each company will continue its separate business activities in the country and region.

Roger Janson, head of Cargill’s grain and oilseed business in EMEA, said: “The joint venture brings together Cargill and ADM’s operational and commercial expertise to meet growing local demand for higher-quality feed ingredients.

“This deal is part of our strategy to grow Cargill’s business across Egypt and the North Africa region and helps us better serve customers in the market with safe, affordable and nutritious food.”

John Grossmann, ADM president of EMEA oilseeds crush, added: “ADM is adding to its geographic footprint in regions of expanding growth, and we’re particularly pleased to continue to enhance our capabilities in Egypt.

“Egypt is an important market where demand for high-quality soybean meal and oil is outpacing the rest of the world. By bringing together expertise and resources from two great companies, and by utilising an existing facility and infrastructure, this joint venture would be perfectly positioned to efficiently meet growing Egyptian demand.”

The companies hope to formally launch the joint venture in mid-2018.

Source: FoodBev

comments closed

Related News

January 15, 2022

DSM forges F&B business group integrating taste, texture and health know-how

Food & Drink

Health and nutrition giant DSM is showcasing a new integrated F&B operating structure that unifies food specialties, hydrocolloids and nutritional products. Positioned as a business group, it will harness the gamut of taste, texture and health solutions to manufacturers in the F&B sector.

January 15, 2022

Keeping food transparent: F&B suppliers talk eliminating bias and the pitfalls of eco-labeling

Food & Drink

FoodIngredientsFirst speaks to key suppliers Corbion, Agrana Fruit and Kerry to discuss what core strategies are helping keep food businesses up-to-speed with their environmental reporting while remaining bias-free.

January 15, 2022

Titanium dioxide EU ban comes into force, companies have six months to adjust

Food & Drink

France banned the use of the additive in 2020, leading companies such as Lonza to launch Vcaps Plus White Opal, its first commercially-available titanium dioxide-free semi-opaque capsule for food supplements. The move followed several lobby groups urging the European Commission to prohibit TiO2.

Send this to a friend