July 27, 2007

Cargill buys grain facilities in Kansas and Wisconsin

Cargill said on July 24 and 25 that it has purchased grain facilities in Shullsburg, Wisconsin, and in Wakeeny, Kansas.

Cargill, on July 25, said it has resumed full operation of the WaKeeney grain business known as Castlerock Marketing, LLC. Cargill had owned and operated the WaKeeney grain elevator for five years until the formation of Castlerock Marketing LLC in 2002, a joint venture between Cargill and Westland Terminal LLC. Final dissolution of the joint venture is expected in the next 30 to 60 days.

With the acquisition, the WaKeeney facility becomes part of Cargill AgHorizon's Central Kansas farm service group. Cargill officials indicated that most of the elevator staff have accepted jobs with Cargill to serve in roles similar to the ones they had developed working with area grain producers under the joint venture.

Jeff Handevidt, Cargill farm service group leader for Central Kansas said that among the changes is the provision of storage for wheat and milo. Cargill also leases the nearby Ogallah, Kansas facility from Westland Terminal LLC to broaden the delivery options available to area grain customers.

The Shullsburg facility, which Cargill acquired on July 25, is a 1.9-million-bushel flat storage facility which is located adjacent to the company's 3.5-million-bushel flat facility, which was purchased in the fall of 2005 from the Wiegel Group. Shullsburg is 30 miles east of Dubuque, Iowa.

This acquisition further strengthens Cargill's commitment to the Southwest Wisconsin region, according to Fred Oelschlaeger, farm service group leader for Cargill AgHorizons. He said additional storage capacity provides added business opportunities for our producer customers in helping address demand in both export as well as domestic grain markets.

Oelschlaeger added that the acquisition provides other key benefits, including one feature especially important to grain producers.