News 241 views last update:6 Aug 2012

Bunge forms joint venture with CPG

Fertilizer and oilseeds producer Bunge Ltd signed a joint venture with Thailand-based Charoen Pokphand Group (CPG) to acquire a majority interest in and operate a soybean processing plant in Tianjin, China. Financial terms of the deal were not disclosed.

The soybean processing plant is part of the Thailand-based Charoen Pokphand Group. Bunge will hold a majority interest in the venture and will manage operations at the plant, its third in China. Located near a modern port, the plant will supply the fast-growing livestock and feed industries and the large consumer market in the greater Beijing area.

Feed and food growth
Driven by rapid commercialization of its meat and feed industries and strong growth in food consumption overall, China's soybean meal and soybean oil consumption have risen at compound annual rates of over 11%percent and 13%, respectively, since 1999, according to USDA statistics.

The plant, which began operations in 1996, has daily crushing capacity of 1,000 metric tons. Under the joint venture, capacity will be expanded to 4,000 metric tons. Bunge will supply the plant from its soybean origination networks in North and South America.

Expand in China
The joint venture is consistent with Bunge's strategic intent to expand its integrated business in China and to work with established and respected partners in the country's most dynamic regions.

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