Cargill and ADM start joint venture in Egypt

Cargill and Archer Daniels Midland Company (ADM) launch a joint venture in Egypt. In this way, the parties hope to meet the high demand for soybean meal and oil from Egypt.

The joint venture will own the processing plant in Borg El-Arab, northern Egypt. A trading office in Switzerland, which is responsible for the supply of soybeans, will also be transferred to the joint venture.

Increasing capacity
The plant's throughput is currently being expanded by Cargill; from 3.000 tons to 6.000 tons per day. “The joint venture brings together the operational and commercial expertise of Cargill and ADM to meet the growing demand for high-quality feed ingredients,” said Roger Janson, Cargill's head of grain operations.

Egypt is one of the most important markets for soybean meal and oil, partly due to livestock farming in the country. As a result, there is a high demand for animal feed.

Competition authorities
The joint venture will stand alone, with ADM and Cargill having equal say. However, the agreement between the two parties still has to be approved by the competition authorities. The companies hope to start the joint venture in mid-2018.

Anne-Jan Doorn

Anne Jan Doorn is an arable expert at Boerenbusiness. He writes about the various arable farming markets and also focuses on the land and energy market.

aj.doorn@boerenbusiness. Nl

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