This week US-based commodities titan Archer Daniels Midland (ADM) announced that it has expanded its joint venture with Japanese commodity group Marubeni Corporation. By expanding this partnership, ADM is able to further expand its reach within the Asian grain market.
According to a new report, ADM and Marubeni Corporation merged their jointly-owned Washington State-based entity Kalama Export Company with the Oregon-based Columbia Grain export terminal, the latter a Marubeni subsidiary. Having control over this key Portland export terminal will give ADM a strong advantage in exporting grain to China and anywhere else in the Asian market where grain is in demand.
In a statement, a high level ADM executive discussed the move and how it will benefit the company:
The move should benefit Marubeni Corporation as well, raising up the capabilities and efficiencies of both companies in the process:
Archer Daniels Midland is enjoying a good streak of business right now, posting strong half-year profits in August and completing the purchase of massive ingredients business Wild Flavors just last week. This is yet another feather in the grain giant’s cap, furthering the makings of a very strong year.
[SOURCE: The Land]