Bunge announced this week the company is selling 35 grain elevators to Japan-based Zen-Noh Grain Corporation.
The elevators are located along the Mississippi River. ZGC’s affiliate, CGB Enterprises, Inc., will operate the acquired facilities through its wholly-owned subsidiary, Consolidated Grain and Barge Company.
CGB currently operates more than 100 grain origination facilities in the United States. The company says it serves a vital role as a direct connection to the U.S. farmer by providing an array of services from buying, storing, selling and shipping crops, to financing and risk management.
The acquisition, according to the company, contributes to its ability to adequately source a stable supply of grains, oilseeds and feed ingredients for Japan and other destinations by strengthening its origination across a broader footprint in the United States.
Meanwhile, Bunge’s storage network will decrease, but the company says, “certain supply agreements” with ZGC will result in a “larger and stronger origination and distribution network.”
