CHS and Ruralco form joint venture with Australian grain company Agfarm
ST. PAUL, Minn., July 28, 2013 /PRNewswire/ -- CHS Inc. (NASDAQ: CHSCP), the nation's leading farmer-owned business and a global energy, grains and foods company, today announced it has invested in Agfarm, an Australia-based grain origination and marketing company. CHS and Ruralco Holdings Limited (Ruralco), Sydney, Australia, will each own 50 percent of Agfarm. The Agfarm name and management structure will not change.
"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."
Agfarm has 38 employees in eight offices in Australia. Agfarm founder Bob McKay will continue to serve the organization as chief executive officer.
CHS Inc. (www.chsinc.com) is a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, grains and foods, CHS is committed to helping its customers, farmer-owners and other stakeholders grow their businesses through its domestic and global operations. CHS, a Fortune 100 company, supplies energy, crop nutrients, grain marketing services, livestock feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products.
Ruralco Holdings Limited (ASX: RHL), is a leading Australian agribusiness. Ruralco operates through a national footprint 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. Ruralco's businesses around the country operate under their own brands. They have their own cultures, their own service models and their own unique value propositions — all designed to meet the demands of local or regional markets. The Group's businesses are committed to supporting the communities within which they operate.
Established in 1992, Agfarm is an Australian owned agribusiness that works with growers to manage the marketing and sale of their grain. Agfarm provides a range of services to make farming easier and ensure the long term viability of its clients operations. Agfarm works with growers to develop a comprehensive strategy that meets their individual requirements, allowing them to put their focus back on farming and keep them on the land for generations to come.
Since becoming part of the Ruralco Group in 2009, Agfarm has been able to develop relationships with a broader network and has secured profitable, long term growth for the business. Agfarm continues to pursue strategic growth through geographic expansion, diversification across the supply chain and the development and commercialization of complimentary business units.
This document contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 that are based on management's current expectations and assumptions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. The company undertakes no obligations to publicly revise any forward-looking statements to reflect future events or circumstances. For a discussion of additional factors that may materially affect management's estimates and predictions, please view the CHS Inc. annual report filed on Form 10-K for the year ended Aug. 31, 2012, which can be found on the Securities and Exchange Commission web site (www.sec.gov) or on the CHS web site www.chsinc.com.
SOURCE CHS Inc.