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ADM and Cargill to partner on soybean joint venture in Egypt

ADM and Cargill have agreed to operate a joint venture in Egypt to provide soybean meal and oil for customers there, positioning the companies to efficiently meet the growing demand across Egypt and the North Africa region. The deal is subject to regulatory review, and is expected to formally launch in mid-2018.

The joint venture will own and operate the National Vegetable Oil Company soy crush facility in Borg Al-Arab, which includes a separate Switzerland-based merchandising operation. Cargill, which already holds a majority stake in the operation, is currently expanding the facility from 3,000 metric tons to 6,000 metric tons of daily crush capacity.

The two industry giants will have equal ownership in the joint venture and a management team for the standalone entity will report to a board of directors appointed by ADM and Cargill. Cargill’s grain business and port terminal in Dekheila, and the ADM-Medsofts joint venture at the Port of Alexandria, are not included in the Egyptian deal.

"The joint venture brings together Cargill and ADM's operational and commercial expertise to meet growing local demand for higher-quality feed ingredients," Roger Janson, head of Cargill's grain and oilseed business in EMEA, said in a press release. "This deal is part of our strategy to grow Cargill's business across Egypt and the North Africa region and helps us better serve customers in the market with safe, affordable and nutritious food."

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