BUENOS AIRES, ARGENTINA — CHS Inc. announced on Aug. 18 that it has reached agreement to allow Noble Argentina S.A. to acquire a portion of the CHS share of an export terminal joint venture at Necochea, a province of Buenos Aires, Argentina.
CHS Argentina currently owns 30% of Sitio 0 de Quequen S.A. (Sitio 0). After finalizing the transaction, CHS and Noble Argentina, a subsidiary of Noble Grain Group Ltd., will each hold 22.75% ownership in Sitio 0. Other terminal owners are South American grain companies E-Grain SA, A&J Nari SA, Alea y Companía SA and Lartirigoyen y Companía S.A.
"We are pleased to welcome Noble Argentina to this important export terminal venture," said Ignacio Bosch, general manager, CHS Argentina. "For CHS, investing in this port on behalf of our farmer-owners allows us to efficiently serve our customers in Asia and elsewhere through access to a new, modern export facility in a key region of Argentina."
Now under construction, the first stage of Sitio 0 will consist of an export terminal with 119,000 tonnes of storage capacity and a high-speed loader with 1,200 tonnes per hour capability at one pier. A planned second stage would include an additional pier and 100,000 metric tons of storage. Sitio 0 has the right to use the Quequen port for 45 years. The first phase is expected to be operational by May 2015.
Necochea is located on the Atlantic Ocean, 528 km (328 miles) southwest of Buenos Aires at the mouth of the Quequen Grande River. CHS will use the terminal to load soybeans, corn, wheat, sorghum, and barley and soybean meal sourced from the area southeast of Buenos Aires.
Since Russia’s invasion of Ukraine in February, the world’s wheat supply has been thrown into question, with poorer nations facing scarcity and a potential food crisis, according to the United Nations.
Following are countries among the world’s least developed that are the most dependent on Russia and Ukraine for their annual wheat supply (2020), according to the UN Conference on Trade and Development. Nations in Africa import 44% of their wheat from Russia and Ukraine, according to the UN.
In marketing year 2022-23, the world is projected by the US Department of Agriculture (USDA) to produce 779.03 million tonnes of wheat and provide 204.89 million tonnes for export.
These are the eight major wheat importing nations/regions as listed in the monthly USDA World Agricultural Supply and Demand Estimates (WASDE) report and their annual tonnes with production.
Russia’s invasion of Ukraine in February and the persistent La Niña climate phenomenon have combined to create some of the most volatile market conditions in recent memory, sending prices skyrocketing as nations that depend on wheat to feed their populations scramble to secure supplies.
Each month, the WASDE releases new projections to reflect the most recent global market and production conditions, and this slideshow will be updated with those changes.