U.S. agribusiness giant Cargill said on Wednesday it’s formed an equal partnership to operate a South Dakota grain elevator with a storage capacity of 2.5 million bushels of grain along rail tracks owned by BNSF Railway.
Cargill formed the joint venture with Concord Grain LLC, solely owned by farmer Todd Ochsner, to run a newly built elevator that can load 110-rail car shuttle trains in the state which ranks No. 6 in growing corn and No. 8 in soybeans.
The joint venture in Aberdeen, in the northeast part of the state, will expand Cargill’s reach in a region that has increased its production of corn and soybeans in recent years.
The market helps feed export facilities in the Pacific Northwest, primarily shipping to customers in Asia.
“The Aberdeen facility is in a strategic location to support growing export demand through the Pacific Northwest,” Ochsner said in a release.
“By teaming up with Cargill, we’ll have the benefits of local ownership and the global perspective and expertise that Cargill brings.”
Cargill said it has partnerships with six other farmer co-operatives but this venture was the company’s first partnership with an individual farmer.
— Reporting for Reuters by Michael Hirtzer in Chicago.