World Grain - February 2018 - 12

NEWSREVIEW

Record grain handling pushes CBH earnings higher
WEST PERTH, AUSTRALIA - Handling a record 16.6 million
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tax to A$91.3 million, an increase of 83% from the previous year.
Revenue for the year ended Sept. 30, 2017, increased 6.3% to A$3.5
billion (A$3.8 billion including Pool revenue), driven by a larger
number of tonnes traded that was partly offset by lower grain prices.
CBH also said in its annual report that it had the largest-ever
group surplus before rebates of A$246.7 million, up 120% from the
previous year. It also reported a record total grower patronage rebate
of A$156.3 million, up 150% from last year.
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culminated in the return of a record rebate to growers," said
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and Marketing and Trading divisions as well as our investments
performed well, with each returning a rebate to growers in the face
of an international grain environment that continues to provide
challenges."
After determining the average crop size will continue to grow,
CBH said it has brought forward the planning and implementation
of key projects.
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after the 2017-18 harvest," CBH said in its annual report. "We will
also continue our network-wide sustainability works, including
shutdowns, road works and mechanical and electrical programs."
CBH has adopted a Network Strategy, which focuses on
maintenance and capital investment in the 100 core sites that receive
more than 90% of the annual crop.
CBH focused in 2016-17 on the construction and upgrade of 25
key projects, which have delivered 300,000 tonnes of additional
storage capacity.
Overall, CBH invested A$97.3 million in capital and maintenance
works across the network, including additional storage and
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and rebate was achieved through a number of factors, including the
large harvest, strong business unit contributions, effective capital
management and focus on cost reduction.
Larger crops reduce costs on a per tonne basis, especially for
storage and handling services, he said.
Wilson said CBH demonstrated the agility of its supply chain
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continues a four-year trend of increasing crop sizes in the state.

Cargill, ARASCO open corn milling facility in Saudi Arabia
RIYADH, SAUDI ARABIA - A joint venture between Cargill and
ARASCO, a Saudi Arabia-based food manufacturer, has opened a
corn milling facility in Saudi Arabia.
The Middle East Food Solutions Co. (MEFSCO) facility in AlKharj will help meet the growing demand from the region's food and
beverage industry, the companies said.
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commitment to the Middle Eastern economy, the company said.
"The Middle East food industry is one of the world's fastestgrowing markets," said Julian Chase, global leader for Cargill
starches, sweeteners and texturizers. "The MEFSCO facility gives
regional food and beverage manufacturers access to high quality,
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local knowledge and supply chain infrastructure were crucial in our
ability to design a facility that best serves local market needs."
The MEFSCO facility was built to serve the Gulf Cooperation
Countries (GCC), which include Saudi Arabia, the United Arab

Emirates, Kuwait, Oman, Bahrain and Qatar. With the new plant,
the joint venture is able to double its glucose and starch production
capacities, triple total production volume and expand its product
portfolio to include high-fructose corn syrup.
The expansion allows MEFSCO to offer enhanced, marketVSHFL¿FVROXWLRQVIRU0LGGOH(DVWHUQFXVWRPHUV
"In the Middle East, consumer awareness around food safety and
hygiene is growing steadily," said Ziyad Alsheikh, chief executive
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commodities into high-quality sweeteners and starch-based products
will provide our regional customers with an edge in making products
that respond to this consumer trend. Customers will be able to serve
the market's demand with products that MEFSCO will manufacture
to the strictest food safety and hygiene standards in our state-of-theart Al-Kharj facility."
The MEFSCO joint venture was established by Cargill and
ARASCO in 2013.

ADM to open new feed enzyme lab
CHICAGO, ILLINOIS, U.S. - As part of a joint development
agreement with China-based Qingdao Vland Biotech Group Co.,
Ltd., Archer Daniels Midland Co. (ADM) plans to open a new U.S.
enzyme research and development lab in California.
The joint development agreement includes the development and
commercialization of enzymes for animal feed applications. In
addition to ADM's research center in Decatur, Illinois, U.S., the
California facility will directly support activities being undertaken in
the joint development agreement. Vland also will conduct research
and development in its Qingdao, China, research laboratory, which
will be upgraded to a new state-of-the-art facility.
Under the terms of the agreement, the companies will share enzymeproducing strains as a basis for the development of feed enzymes that
will improve animal nutrition and health. Products developed under
the agreement will be commercialized by both companies.
12

"This agreement and the opening of our new enzyme lab will
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at ADM. "The agreement will give our research and development
team access to new enzyme strains, and the new U.S.-based enzyme
research lab will provide us with the resources to use those strains to
develop new, state-of-the-art feed enzymes. We're looking forward
to adding these capabilities to our already strong array of animal
nutrition products and solutions."
Vikram Luthar, president of bioactives at ADM, said, "This
agreement is another important step as we continue to expand our
capabilities in bioactives, including enzymes and novel ingredients
for the food, pharmaceutical and animal feed industries. We are
continuing to build our portfolio to offer innovative solutions to
customers in these exciting and rapidly growing markets."
February 2018 / World Grain / www.World-Grain.com

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World Grain - February 2018

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