ADM and Central Valley Ag Coop Form Joint Venture to Construct Shuttle Loader Elevator Near Randolph, NE
Date Posted: July 30, 2013
Randolph, NE—Archer Daniels Midland Company (NYSE: ADM) and Central Valley Ag Cooperative (CVA) announced July 30 the formation of 81-20 Grain Terminal, LLC, a joint venture to construct a 5 million bushel shuttle loader grain elevator near Randolph, Neb.
The elevator will originate corn and soybeans from regional farmers, primarily for transportation by 110-car BNSF shuttle trains to export markets via the U.S. Gulf Coast, Pacific Northwest and Southwest.
ADM and CVA will each own 50 percent of the grain facility, which will feature two receiving pits and one rail receiving pit—each capable of dumping 20,000 bushels of grain per hour.
The facility will be located at the intersection of U.S. Highway 20 and U.S. Highway 81 three miles west of Randolph and is expected to begin operating by fall 2014.
“This joint venture is another example of ADM investing to serve growing global demand for agriculture,” said Joe Taets, president, ADM Agricultural Services.
“We look forward to working with CVA and producers in the area to make the most of their farming operations.
"The new elevator—along with our global transportation fleet and network of customers—will provide additional marketing opportunities for regional producers, which can help add value to their crops.”
Pierce County—in which the elevator will be located—along with surrounding Cedar, Knox and Wayne counties have all seen corn and soybean production increase dramatically since 2000.
The facility’s location at the intersection of two major highways will provide the area’s producers with convenient access.
“Enhancing the ability of member-owners to link to greater global marketing and transportation opportunities is what makes this joint venture so exciting,” stated Doug Derscheid, president and CEO of CVA.
“At CVA, we leverage our expertise and high-speed facilities to meet local grain producers’ harvest and post-harvest storage and marketing needs.
"Through this joint venture, ADM will connect those local producers to a vast national and global network.”
For more information, call 217-424-5413.