SYDNEY, AUSTRALIA — Cargill and GrainCorp Ltd. have agreed to end a seven-year grain buying joint venture after the removal of the bulk wheat export monopoly in Australia in July 2008 has made the two companies competitors.
As part of the agreement, Cargill will buy GrainCorp’s 50% share in Australian Grain Accumulation Services (A.G.A.) for an undisclosed amount. A.G.A. will continue to operate as a wholly owned subsidiary of Cargill Australia under its current name and in its current form to buy grain and oilseeds from Australian farmers.
GrainCorp, meanwhile, will form a new grain buying team.
"We remain fully committed to Australia’s grain industry," said Robert Green, general manager for corporate affairs and business strategy at Cargill Australia. "We continue to see Australia as an important origination market to serve both domestic and international customers. We look forward to continuing our long-term partnership with wheat and grain growers in Australia."
A.G.A. was established in 2003 to buy grain and oilseeds for the flour milling, oilseed processing and trading activities of GrainCorp and Cargill.
The two companies will maintain their milling joint venture, Allied Mills.