ADM, Cargill Launch Soybean Joint Venture

July 2nd, 2018


Category: Grains

(AgriCensus) – Two agribusiness giants Archer Daniel Midland and Cargill have launched a new joint venture that will take ownership of Cargill’s Egyptian crusher in Borg Al-Arab while simultaneously establishing a Swiss-based trading house to supply the crusher with beans.

SoyVen – presumably a play on the words soybean and venture – will be owned 50-50 by the two companies and will report to a board that is appointed by both companies.

The assets will include a newly-established Rolle-based trading house that will supply the venture with soybeans, as well as the 6,000-mt per day crushing facility located around 100 kilometres northwest of Cairo on the coast.

The company would operate as an independent entity, meaning Cargill and ADM will compete with other companies to supply soybeans to the joint venture, which will be headed up by former Cargill executive Ahmet Erturk.

“The demand for high-quality soybean meal and for oil from both the food manufacturing and animal feed sectors continues to rise and I’m confident customers will turn to SoyVen as the premier provider in Egypt,” Erturk said in prepared remarks.

The deal would not include Cargill’s grain business and port terminal in Dekhelia or ADM’s Medsofts joint venture at Alexandria, the statement said.

Soymeal consumption in Egypt is growing at nearly 7% per year, leaving Egypt to import about a third of its annual soymeal demand of 3 million mt.

Unlike many other importers of soymeal, Egypt’s aquaculture industry is the biggest demand source for soymeal – accounting for more than 40% of demand.

Poultry and dairy cattle account for the rest, according to the USDA.

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