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CHS and MKC announced their intention to expand their current grain marketing joint venture to maximize the value of an end-to-end cooperative supply chain in the Southern Plains.
Agronomy

CHS Inc. and MKC to expand grain marketing joint venture

Joint venture will expand market access and create new opportunities for U.S. cooperatives and farmers.
Apr 10, 2023

Longtime cooperative partners CHS Inc. and Mid-Kansas Cooperative (MKC) announced their intention to expand their current grain marketing joint venture to maximize the value of an end-to-end cooperative supply chain in the Southern Plains. This development will expand market access and patronage-eligible options to maximize owner value by connecting area farmers and cooperatives with end-use markets and customers.

“CHS has been successfully partnering with MKC through joint ventures for more than 10 years,” says John Griffith, executive vice president, ag business, CHS. “This initiative expands our collaborative presence and maximizes our complementary asset base in the region to create an efficient, integrated supply chain to connect cooperative- and farmer-owners in the Southern Plains with customers around the world while leveraging the TEMCO terminal in Houston, Texas.”

This expanded partnership will drive long-term growth through a responsive grain network and reinvestment to expand marketing opportunities and modernize rail infrastructure in this vital growing region. The two companies are currently building a rail-served grain terminal near Sterling, Kan., that is scheduled to be operational in 2024.

“Expanding our relationship with CHS will open up market access and create new opportunities for our farmers,” says Brad Stedman, president and CEO, MKC. “Our track record of successful partnership and shared vision to create value for cooperative-owners and customers makes MKC and CHS the right partners to link farmers with a more defined southern supply chain.”

According to the cooperative partners, both companies will continue to independently own and operate assets throughout the region while expanding their grain marketing joint venture, designed to more efficiently move grain through a seamless distribution channel. The companies expect to begin to operate the expanded 50/50 joint venture this summer.


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