Global agribusiness COFCO International and agricultural cooperative GROWMARK have agreed to exchange grain assets in the US state of Illinois for an undisclosed sum, World Grain wrote.
As part of the transaction, China-based COFCO International agreed to purchase GROWMARK’s minority stake in a transloading facility in Cahokia, while GROWMARK agreed to purchase a Chicago grain warehouse facility, known as the B-House, from COFCO, the 28 June report said.
Located on the Calumet River, near Chicago, the B-House facility would allow GROWMARK to handle 1.1bn bushels/year of grain and oilseeds, the report said.
The Cahokia facility is a grain and byproduct transloading terminal, located on the Mississippi River, in St Louis Harbour. It was built by COFCO in 2017, after which GROWMARK purchased a small interest, which it had now sold back.
“We plan to continue investing in our US business and intend to pursue additional opportunities focused on supporting our US Gulf and Pacific Northwest export strategy,” Zhijun (Jerry) Shi, chief operating officer, grains and oilseeds, for COFCO International in North America, was quoted as saying.
COFCO’s ownership of the Cahokia facility had raised concerns from two members of the US Congress, Nikki Budzinski and Mike Bost, who sent a letter to US Treasury Secretary Janet Yellen on 27 June asking for a thorough review, World Grain wrote.
“While we support expanding access to foreign markets, it is alarming that a majority of US ports and terminals are owned and operated by foreign entities, especially China,” the letter stated.
“COFCO’s acquisition of the Cahokia grain terminal is just the latest in an ongoing divesture of American waterways and will contribute to that majority.”
Although a 2 July report by Brownfield Ag News quoted Budzinski as saying the Cahokia facility sale had received full approval since the letter was sent, she said they would continue to push for a review.
GROWMARK and COFCO were contacted by World Grain for comment regarding the letter, with the former declining to comment while COFCO had not responded.
Located on the Calumet River, near Chicago, the B-House facility would allow GROWMARK to handle 1.1bn bushels/year of grain and oilseeds, the report said.
“This transaction reflects GROWMARK’s commitment to increasing farmers’ profitability while strengthening its presence along strategic waterways and ports throughout the Midwest,” Matt Lurkins, vice president of grain and strategic relationships for the cooperative, was quoted as saying.
Based in Bloomington, Illinois, GROWMARK provides agronomy, energy, facility engineering and construction, and logistics products and services, as well as grain marketing and risk management services to almost 400,000 North American customers, the report said.
Active in 36 countries, COFCO International is the overseas agriculture business platform for China’s largest food and agriculture company COFCO Corporation. In 2023, COFCO International handled over 122M tonnes of related commodities.
