US food processing company Archer Daniels Midland (ADM) will form a joint venture with agrifood company Cargill, which will manufacture soybean meal and soybean oil in Egypt.

The ADM Cargill joint venture will own and operate Cargill’s majority owned National Vegetable Oil Company soy crush plant in Borg Al-Arab and associated commercial and functional activities. These include a separately located Switzerland-based merchandising operation, which will be the source of soybeans to the soy crush facility.

Commenting on the soybean joint venture, Roger Janson – head of Cargill’s grain and oilseed business in EMEA, said: “The joint venture brings together Cargill and ADM’s operational and commercial expertise to meet growing local demand for higher-quality feed ingredients.

“This deal is part of our strategy to grow Cargill’s business across Egypt and the North Africa region and helps us better serve customers in the market with safe, affordable and nutritious food.”

Currently, Cargill is expanding the soybean processing plant to double its daily crush capacity, from 3,000 metric tons to 6,000 metric tons.

According to the ADM and Cargill, the soy crush facility will have the capability to produce higher-protein soybean meal and will help in decreasing the need for importing soybean meal into Egypt.

John Grossmann – ADM’s president, EMEA Oilseeds crush, commenting on the soybean joint venture, said: “ADM is adding to its geographic footprint in regions of expanding growth, and we’re particularly pleased to continue to enhance our capabilities in Egypt.

“Egypt is an important market where demand for high-quality soybean meal and oil is outpacing the rest of the world. By bringing together expertise and resources from two great companies, and by utilizing an existing facility and infrastructure, this joint venture would be perfectly positioned to efficiently meet growing Egyptian demand.”

ADM and Cargill will have equal ownership over the soybean joint venture which will be operated as an independent company. The grain business and port terminal in Dekheila of Cargill will not be part of the joint venture and neither will be the ADM-Medsofts joint venture at the Port of Alexandria.

As per the partners, each of them will continue to run their separate business activities in Egypt and EMEA region.

The formation of the soybean joint venture is expected to be done in mid-2018, subject to regulatory approval.

  Archer Daniels Midland, Borg Al-Arab, Cargill, Egypt, National Vegetable Oil Company, Soybean joint venture, Soybean meal, Soybean oil