Carr’s reveals US joint venture plan
CUMBRIAN company Carr’s Milling Industries, the agriculture, food and engineering group, has announced a new US joint venture.
Carrs’ US subsidiary, AFS Inc. is investing in the JV to produce its patented low-moisture feed blocks.
The new partnership, to be called ACC Feed Supplement LLC , will be 50% owned by AFS and Consumer Supply Distributing. CSD is 50% owned by an existing AFS customer, CHS Inc, a Fortune 100 company.
ACC will build a low-moisture feed block plant at the premises of CSD in Sioux City, Iowa with an annual capacity of 12,000 tonnes, incorporating proprietary processing technology. The new plant will commence production in the second half of 2014.
CHS is a leading global agribusiness owned by farmers, ranchers and co-operatives across the US, and supplies: energy, crop nutrients, grain marketing services, livestock feed, food and food ingredients.
Tim Davies, chief executive of Carr’s, said: “Investing in ACC is in line with our strategic objective of building our share of the US low-moisture feed block market.
“We are experiencing continuing growth and demand for our patented low moisture feed blocks both in the USA and across all markets. ACC adds to our coverage of the US where CHS and CSD have a significant, nationwide sales and distribution network.”
ACC will add to existing low-moisture feed block plants in Nevada, Oklahoma and South Dakota, increasing AFS’ presence in the central, southern and western markets in the US.