Farmer co-ops CHS and MKC to build grain shuttle loader in Kansas
ST. PAUL, Minn., March 6, 2013 /PRNewswire/ -- The boards of CHS Inc. (NASDAQ: CHSCP), an energy grains and foods company and the nation's leading farmer-owned cooperative, and Mid-Kansas Cooperative (MKC), a full-service farm cooperative founded in 1965, have approved an agreement to form a limited liability company (LLC) to build and operate a high-speed shuttle loading facility in Canton, Kan.
Construction on property currently owned by MKC is expected to begin spring 2013 and be completed in about 12 months. Located on the Union Pacific rail line, the grain shuttle will load 110-car trains bound for export facilities in the Pacific Northwest, the Gulf Coast and Mexico. Upon completion, on-site storage will be in excess of 3 million bushels.
The newly formed LLC will become a member of Team Marketing Alliance (TMA) which will handle grain marketing services for the Canton grain shuttle facility.
"We are excited about the opportunity to come together with strong partners like MKC and TMA to expand the global reach for Kansas grain farmers," said John McEnroe, executive vice president, CHS Country Operations Division. "This is a great example of how we can be greater together."
"MKC has been studying this project for quite some time and part of our due diligence included the selection of the right partner that could bring us an advantage immediately," said David Christensen, CEO, MKC. "We're very pleased to be able to develop a partnership with our regional cooperative CHS that will bring considerable value to our member owners."
TMA is a limited liability company wholly owned by four central Kansas cooperatives: MKC, Cooperative Grain & Supply, Hillsboro, Kan.; Farmers Cooperative Elevator Co., Halstead, Kan.; and The Farmers Cooperative Elevator Co., Nickerson, Kan.
Collectively, these owners operate 48 country elevator facilities for the handling of bulk grain and TMA is the grain division for these four local cooperatives. All merchandising, logistics, accounting and e-commerce are handled through the TMA office. A team of origination specialists, which TMA keeps on staff, initiates farm-marketing programs.
Mid-Kansas Cooperative Association (www.mkcoop.com) is a full-service farm cooperative offering a complete line of supplies and services for both farm and urban customers in 11 counties throughout central Kansas. With a current membership of more than 4,800 members, MKC was founded in 1965 by the merger of three neighboring cooperatives in Moundridge, Buhler, and Groveland. Since its founding, it has grown in size and territory through mergers and acquisitions. More than 200 employees play an important role in the growth and success of MKC.
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.
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.