Cargill Acquires Grain Elevator in Voronezh, Russia
Cargill has been using the elevator for the last three years and is very familiar with the employees there who it will now integrate into its Russian workforce.
Registered as OAO Zerno, the elevator has 90 staff. Cargill has been using the elevator for the last three years and is very familiar with the employees there who it will now integrate into its Russian workforce.
Cargill’s primary purpose inacquiring the elevator is to enable it efficiently store the receipts from its multi-year malting barley contract growing programme. This programme is aimed at ensuring the company can guarantee supplies to its malt plant at Efremov.
Andrew Glass, the head of Cargill’s operations in Russia, said: “This elevator will bring a high-value asset to Cargill's grain business in Russia and allow us to better serve our customers in the area. It is strategically located in Russia’s central black earth region, which is convenient for grain origination.”
With over US$300 million invested in the Russian agricultural and food processing sectors, Cargill is one of the leading foreign investors in Russia. In total Cargill Russia employs 1,306 people, over 99% of whom are Russian nationals. On a regional level, Cargill and its joint venture partners now own and operate 75 grain elevators in Romania, Ukraine, Kazakhstan, Hungary and Russia, representing some 2 million tonnes of storage capacity.
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