CARLISLE, UNITED KINGDOM — Carr's Milling Industries announced on Aug. 20 that its wholly owned U.S. subsidiary, AFS Inc., is investing in a newly established joint venture for the production of its patented low-moisture feed block products. The new joint venture company, to be called ACC Feed Supplement LLC (ACC), will be 50% owned by AFS and Consumer Supply Distributing LLC (CSD). CSD is 50% owned by existing AFS customer, CHS Inc.
"Investing in ACC is in line with our strategic objective of building our share of the U.S. low-moisture feed block market. We are experiencing continuing growth and demand for our patented low moisture feed blocks both in the U.S. and across all markets,” said Tim Davies, Carr’s chief executive officer. “ACC adds to our coverage of the USA where CHS and CSD have a significant, nationwide sales and distribution network."
ACC will build a low-moisture feed block plant at the premises of CSD in Sioux City, Iowa, U.S., with an annual capacity of 12,000 tonnes, incorporating proprietary processing technology. The new plant will start production in the second half of 2014 and will supply customers of AFS, CHS and CSD.
CHS is a leading global agribusiness owned by farmers, ranchers and co-operatives across the U.S., and supplies energy, crop nutrients, grain marketing services, livestock feed, food and food ingredients.
ACC will add to existing low-moisture feed block plants in Nevada, Oklahoma and South Dakota, increasing AFS' presence in the Central, Southern and Western markets in the U.S.
|Sign up for our free newsletters
From daily reports on breaking news to weekly updates, World Grain has the grain, flour and feed industries covered.