15 May 1998
Cargill and Monsanto team up
By FWi staff
INTERNATIONAL grain trader Cargill and chemical giant Monsanto announced today (Friday) that they have signed a letter of intent to form a worldwide joint venture.
The two multinationals have signed an agreement to create and market new products for the grain processing and animal feed markets.
The 50-50 joint venture will focus on applying biotechnology to improve feed products for animals raised for human consumption, such as pork, beef, poultry and fish. It will also develop and market feed additives grown in crops using biotechnology.
On the grain front, the venture aims to create and market crops with traits designed to reduce costs and improve yields for the wet and dry milling, oilseed crushing and refining, feed compounding and other processing industries.
While the initial agreement only involves animal feed and grain processing, both companies have agreed to explore partnerships in other areas such as food.
The venture aims to draw from Monsantos expertise in genomics, biotechnology and seeds, while Cargill will provide the necessary processing and trading infrastructure needed to develop and market new products.