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The Andersons, Cargill renew marketing pact

02.07.2018 11:15 "Agro Perspectiva" (Kyiv) The Andersons, Inc. (TAI) on June 26 renewed its five-year marketing agreement and five-year lease agreement with Cargill for the latters Maumee and Toledo, Ohio, U.S., grain handling and storage facilities. The agreements took effect on June 1.

Under terms of the agreement, Cargill has the marketing rights to grain in the Cargill-owned facilities as well as the adjacent Andersons-owned facilities in Maumee and Toledo.

TAI will remain fully active in the NS and CSX rail markets as such markets relate to facilities other than the facilities which are the subject of this agreement, the companies noted in a June 28 filing with the U.S. Securities and Exchange Commission. TAI via its merchant staff may from time to time make direct sales into rail markets for Toledo grain, but only after consultation with the Cargill designated merchant. Should an opportunity arise wherein TAI or its affiliates desires to purchase certain amounts of Toledo grain, TAI may contact Cargills merchandising contact for this agreement with an offer. Further, TAI may direct trading relationships with certain customers as mutually agreed by the parties, inclusive of but not limited to vessel sales of Toledo grain to Canadian receivers and vessel sales of specialty soybeans to Japanese customers.

The grain origination and merchandising agreement also states that Cargill shall use its best efforts throughout the duration of this agreement, to promote the sale of and to merchandise the Toledo grain Cargill has purchased from TAI. Cargill, in consultation with the TAI designated merchants, shall merchandise the Toledo grain Cargill has purchased from TAI into both export and domestic markets.

According to the Grain & Milling Annual 2018 the grain elevator in Maumee has upright storage capacity of 15.8 million bushels and flat storage capacity of 2.3 million bushels, with loading capacity of 25,000 bushels per hour. The facility in Toledo has upright storage capacity of 5.9 million bushels and loading capacity of 40,000 bushels per hour.

http://www.world-grain.com

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