CHS joins Russian farm operator in new j.v.

by Eric Schroeder
Share This:

ST. PAUL, MINN. — CHS Inc. has partnered with Moscow-based Agrico Group in creating a joint venture company named ACG. The new company, which will be managed jointly in CHS’s Geneva office, will manage origination, logistics, export and worldwide marketing of Russian wheat, feed grains and potentially oilseeds.

According to CHS, the ACG joint venture does not include other Agrico businesses or operations, and employees working in Agrico grain origination, logistics and grain marketing will become part of the joint venture company.

"The formation of ACG further integrates our Black Sea strategy, giving CHS access to Russian grain origination, thereby improving our ability to serve global customers," said Claudio Scarrozza, general manager, CHS Europe.

Georgy Bogomolov, vice-chairman of Agrico Group, said the joint venture will allow Agrico to focus on its core activities, such as farming, meat production and consumer-ready fresh vegetables. He added the partnership is an example of interest of large global, agricultural companies in the future of Russian agriculture.

CHS Inc. is a diversified energy, grains and foods company owned by farmers, ranchers and cooperatives, along with thousands of stockholders across the United States. The company supplies energy, crop nutrients, grain, livestock feed, food and food ingredients, along with business solutions.

Agrico is a privately-owned farm operator in Southern Russia that uses western-style practices to produce wheat, rapeseed, potatoes, carrots, onions and animal feed. The animal feed mill supports production of 75,000 (expanding to 350,000) live pigs sold annually to local processors. It sells 80% of its grain locally with the balance exported worldwide.

Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.








The views expressed in the comments section of Food Business News do not reflect those of Food Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.