Agribusinesses ADM and Cargill to Team Up in Soybean JV

American agribusinesses Archer Daniels Midland (ADM) and Cargill announced the formation of a new joint venture Monday that will focus on soybean oil and meal for the Egyptian market.

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

Under the terms of the deal, the joint venture will assume ownership of the National Vegetable Oil Company soy crush plant in Borg Al-Arab, Egypt, as well as a merchandising operation based in Switzerland that will provide soybeans to the facility.

“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,” said John Grossmann, president of ADM’s Oilseeds crush business in EMEA, in the release. “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 utilizing an existing facility and infrastructure, this joint venture would be perfectly positioned to efficiently meet growing demand in Egypt.”

Cargill said it is currently expanding the Borg Al-Arab crush plant to increase its crush capacity from 3000 MT/day to 6000 MT/day. Following the upgrade, the facility will manufacture soybean meal with higher quantities of protein, according to the release.

A joint venture between ADM and Medsofts at the Port of Alexandria and Cargill’s grain assets and port terminal in Dekhelia are not included in the new effort. The ADM-Cargill joint venture is expected for formally launch in mid-2018 pending regulatory review.

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