AGRI Industries to end grain pact with Cargill - Newsline

Rural Cooperatives, Jan-Feb, 2004 by Patrick Duffey

AGRI Grain Marketing, a joint venture of 17 years standing between AGRI Industries of West Des Moines, Iowa, and Cargill Inc., is being terminated as of March 1, 2004. The venture has 30 employees who handle grain trading, accounting and logistics and another 80 working at 11 grain handling facilities in Iowa, Illinois and Wisconsin. AGRI Industries also serves producers in Minnesota and Nebraska. The three terminals originally owned by AGRI Industries--in Burlington, McGregor and Fulton, Ill.--and Cargill's seven terminals will revert back to the parent companies. No decision has been made on jointly owned facilities at Joy and Pekin, Ill.

AGRI's share of the profits have accounted for 50 to 75 percent of the cooperative's total annual net income. Chief Executive Officer Jerry Van Der Kamp says the decision was prompted by the changing nature of the grain trade. Farmers are now selling grain and soybean directly to feed mills and ethanol plants, bypassing grain elevators that had been their traditional market.