sydney / reuters / Archer Daniels Midland has bought a 10 per cent stake in GrainCorp and is seeking talks on a takeover that would give the U.S. agribusiness a stronger platform to supply Asia.
The purchase comes at a time of global consolidation in the agricultural sector amid intense competition to feed fast-developing countries seeking food security like China.
“GrainCorp is a well-managed company, and together with ADM would be better positioned to connect Australia’s farmers with growing global demand for crops and food, particularly in Asia and the Middle East,” said ADM chief executive Patricia Woertz.
ADM’s move comes after a wave of industry consolidation and could attract rival interest from other major players, also seeking a bigger role in the global agricultural supply chain beyond the United States and Canada.
“Australia has an opportunity to be a good source as a food basket for Asia as Asia’s appetite for quality produce increases,” said industry analyst Akshay Chopra.
GrainCorp handles as much as 60 per cent of eastern Australia’s grain crop and has about 20 million tonnes of storage at more than 280 inland grain-handling sites. The ADM offer values the company at $2.8 billion.
FCC fifth in best employers list
Farm Credit Canada (FCC) has been ranked fifth in Maclean’s magazine’s top 50 Best Employers in Canada rankings, the 10th year in a row that it has been named for the award.
The annual list is based on the results of the 2012 Aon Hewitt survey that gauges the level of employee engagement in participating companies.
“Making the Best Employers in Canada list is rewarding, but it’s really a side benefit of the survey,” FCC president and CEO Greg Stewart said in a release. “More importantly, the survey recognizes the significant contributions of our employees toward shaping their own work environment. It provides us with a valuable opportunity to listen and act on their ideas on how we can improve as an employer of choice.”
FCC has more than 1,500 employees working from coast to coast.