CHS Inc. has partnered with Adecoagro (AGRO) to form CHS AGRO, a Pehuajo, Argentina-based joint venture that will grow and process sunflower kernel and in-shell products for global marketing and distribution by CHS. Each company will hold 50% stake in the joint venture.
“Global food companies in Europe, the Middle East and the Pacific Rim look to CHS to deliver superior quality sunflowers for consumer food, baking and snack markets,” said Jim Krogh, president of CHS Sunflower, Grandin, N.D. “CHS AGRO will provide CHS with additional sunflower origination to further grow the business, while adding value to member-owners’ crops.”
Ignacio Bosch, general manager of CHS de Argentina, added that the companies are “a good fit.”
“Our partner, Adecoagro, is focused on further developing its agricultural production footprint,” Mr. Bosch said. “CHS and Adecoagro have a similar culture that will create numerous business opportunities.”
Founded in 2002, Adecoagro owns nearly 700,000 acres of farmland and several industrial facilities within Argentina, Brazil and Uruguay. It produces more than 1 million tons of agricultural products, including: corn, wheat, soybeans, rice, dairy products, sugar, ethanol and electricity, among others.
