August 9, 2010

Cargill buys grain operations in Canada, Hungary

Cargill is enhancing its grain handling presence in Canada and Hungary while divesting its liquid vitamin business in the US.

With the purchase of Viterra's grain elevator facility in Carseland (close to Calgary), Alberta, effective August 23 this year, Cargill is growing its presence in southern Alberta, Canada.
 

The Carseland grain facility was built in 1998. It has a grain storage capacity of 35,300 tonnes with a 112-railcar loading capability.
 

In Hungary, Cargill has begun the process of acquiring full ownership of Agrograin, one of the country's leading grain and oilseeds trading and storage companies.

 
With headquarters in Budapest, 23 locations around the country and about 290 employees, Agrograin has been a joint venture partner with Cargill since 1995. The deal will be subject to regulatory and other approvals.
 

The intended acquisition fits closely with Cargill's strategy of developing its origination capacity and increasing its competitiveness in the grain and oilseeds arena in Central and Eastern Europe.
 

As well as trading activity, which covers the whole of the Hungarian market, Agrograin has two export facilities on the River Danube.
 

Cargill has been active in Hungary since 1995, when the company acquired a minority stake in Agrograin. In 2001 Cargill acquired the Agribrands animal feed business in Hungary, which owns modern feed plants in Karcag and Kaposvar.

 
Meanwhile, SensoryEffects announced the acquisition of Cargill Inc.'s liquid vitamin ingredient business. The ingredients are designed for use in the fortification of dairy products. The manufacturing of these products will be integrated into the SensoryEffects plant in Bridgeton, Missouri, US.