(Dow Jones) — CHS Inc., the largest farmer cooperative in the U.S., is forming a joint venture with a large Japanese cooperative to supply wheat and barley to Japan.
CHS, based outside St. Paul, Minn., will own 51{fd15d42d1b024b97d6d50958be27cc8145b6addb99e015780abccf2984117bb0} of the joint venture with Tokyo-based cooperative Zen-Noh. The venture, named CZL Ltd., will be managed out of Tokyo.
The venture will export grain in the U.S., Canada and Australia to Japan, which is the top importer of wheat and barley, according to CHS.
The partnership comes as grain companies look to expand globally, and better position themselves to export grain out of the U.S. to Asia. The partnership is “particularly significant” for Midwest shippers and growers sending grain to Pacific Northwest export terminals, said Rick Browne, senior vice president for CHS Asia-Pacific.
CHS and privately held Cargill Inc. announced last year they were expanding a partnership in the Pacific Northwest to include three of their export terminals, those in Kalama and Tacoma, Wash., and Portland, Ore.
Competitor Bunge Ltd. is also vying for more export business to Asia, having recently opened a new port in Longview, Wash., about an hour north of Portland.
Source: Dow Jones
Posted by Haylie Shipp
