CHS Inc., the largest farmer cooperative in the US, is forming a joint venture with Japanese cooperative Zen-Noh to supply wheat and barley to Japan.
CHS, based outside St. Paul, Minnesota, will own 51% of the joint venture with Tokyo-based cooperative Zen-Noh. The venture, named CZL Ltd., will be managed out of Tokyo.
"CHS and Zen-Noh have been strong trading partners for more than 30 years," said Rick Browne, senior vice president, CHS Asia-Pacific.
"This formal agreement strengthens CHS role in adding value to member-owners grain by aligning with these trusted partners in an important Asia-Pacific market."
CZL will market commodities that are primarily sourced in the United States, Canada and Australia, to Japan.
Japan is the top global destination for wheat and barley imports. Browne says this partnership is particularly significant for CHS shippers and growers sending grain from the Midwest and Pacific Northwest to export terminals in Kalama and Tacoma (Washington), and Portland (Oregon).
"Strategically aligning grain origination with growing consumer demand is core to our continued global commodities expansion on behalf of our cooperative owners," Browne said.
is a leading cooperative, owned by farmers, ranchers and co-ops across the United States.
CHS supplies energy, crop nutrients, grain marketing services, livestock feed, food and food ingredients, along with business solutions including insurance, financial and risk management services.
Zen-Noh is involved in the marketing, tracking, and quality assurance of the products of its cooperatives and is one of the world's largest importers of animal feeds and agricultural fertilizers.