Russia: Cargill Acquires Grain Elevator in Voronezh, Russia
Cargill announced on December 7 that it has acquired a grain elevator in the Russian village of Davydovka in the Voronezh region as part of an ongoing strategy to improve its sourcing of local raw materials.
Registered as OAO Zerno, the elevator has 90 staff. Cargill has been using the elevator for the last three years and is very familiar with the employees there who it will now integrate into its Russian workforce.
Cargill’s primary purpose inacquiring the elevator is to enable it efficiently store the receipts from its multi-year malting barley contract growing programme. This programme is aimed at ensuring the company can guarantee supplies to its malt plant at Efremov.
Andrew Glass, the head of Cargill’s operations in Russia, said: “This elevator will bring a high-value asset to Cargill's grain business in Russia and allow us to better serve our customers in the area. It is strategically located in Russia’s central black earth region, which is convenient for grain origination.”
With over US$300 million invested in the Russian agricultural and food processing sectors, Cargill is one of the leading foreign investors in Russia. In total Cargill Russia employs 1,306 people, over 99% of whom are Russian nationals. On a regional level, Cargill and its joint venture partners now own and operate 75 grain elevators in Romania, Ukraine, Kazakhstan, Hungary and Russia, representing some 2 million tonnes of storage capacity.
Cargill is an international provider of food, agricultural and risk management products and services. With 124,000 employees in 59 countries, the company is committed to using its knowledge and experience to collaborate with customers to help them succeed.
Cargill began its activities in Russia in 1991 with the opening of a representative office in Moscow, although a prior trading relationship with Russian-based organisations dates back some 30 years. Today, aside from the company’s significant grain and oilseeds activity, a large number of other Cargill businesses operate in Russia, in locations including Voronezh, Efremov, Krasnodar and Rostov. The company trades sugar, coal and petroleum and supplies products ranging from cocoa to beef, pork and turkey. Cargill has its own brand of vegetable oil known as Sunny Gold and bottle and supply sunflower, rapeseed, corn and tropical oils. The company also provides food, beverage and pharmaceutical customers with specialty ingredients like texturisers and flavourings.
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