ST. PAUL, MINNESOTA, US — Longtime cooperative partners CHS Inc. and Mid-Kansas Cooperative (MKC) on April 10 announced their intention to expand their current grain marketing joint venture to maximize the value of an end-to-end cooperative supply chain in the Southern Plains. They said this development will expand market access and patronage-eligible options to maximize owner value by connecting area farmers and cooperatives with end-use markets and customers. 

“CHS has been successfully partnering with MKC through joint ventures for more than 10 years,” said John Griffith, executive vice president, ag business, CHS. “This initiative expands our collaborative presence and maximizes our complementary asset base in the region to create an efficient, integrated supply chain to connect cooperative- and farmer-owners in the Southern Plains with customers around the world while leveraging the TEMCO terminal in Houston, Texas.”

This expanded partnership will drive long-term growth through a responsive grain network and reinvestment to expand marketing opportunities and modernize rail infrastructure in this vital growing region. The two companies are currently building a rail-served grain terminal near Sterling, Kansas, that is scheduled to be operational in 2024.

“Expanding our relationship with CHS will open up market access and create new opportunities for our farmers,” said Brad Stedman, president and chief executive officer, MKC. “Our track record of successful partnership and shared vision to create value for cooperative-owners and customers makes MKC and CHS the right partners to link farmers with a more defined southern supply chain.”

According to the cooperative partners, both companies will continue to independently own and operate assets throughout the region while expanding their grain marketing joint venture designed to more efficiently move grain through a seamless distribution channel. The companies expect to begin to operate the expanded 50/50 joint venture this summer.

MKC, which last year merged with Progressive Ag Cooperative, consists of 71 locations with nearly 600 employees. The cooperative offers a wide range of products, programs and services through its agronomy, energy, feed, energy, and risk management divisions.

CHS serves customers in 65 countries and employs more than 10,000 people worldwide, providing crop inputs, market access and risk management services that help farmers feed the world. Its agronomy, grains, foods and energy businesses recorded revenues of $47.8 billion in fiscal year 2022.