SCATS to buy Continentals UK arm
By FWi staff
SCATS – the south of Englands largest farmer-owned business – is to buy the UKs grain export business and assets of Continental Grain.
Cargill decided not to include Continentals UK assets in its worldwide acquisition of the companys operations.
In its deal – due to take effect later this summer – SCATS (Southern Counties Agricutural Trading Society) gets Continentals deep-water grain export silos and its animal feedstuffs and fertiliser import facilities.
Tim Pollock, managing director of SCATS, said that grain exports through the port of Southampton have been averaging over 850,000t a year, and are of considerable economic importance to the farmer members in his company.
He believes that the acquisition will secure long-term farmer control of the silo facilities, and give direct access to EU and international markets.
“Continentals deep-water import berth and storage facilities will give us an ocean freight advantage and compliment our animal feed milling and fertiliser business, said Mr Pollock.
“It is our intention to offer other farme-controlled businesses the opportunity to become more closely involved in these excellent facilities,” he added.
In a company statement, SCATS pledged to take on the UK Continental staff and proposes to relocate its existing grain trading and marketing team to the Continentals Southampton premises.