By Tim Leeds
A statement released yesterday by the Archer Daniels Midland Company announced a joint venture between ADM and Cenex Harvest States to enable the construction of a 110-car shuttle loading facility between their two Havre grain elevators.
The efficiency of the high-speed facilities allows Burlington Northern and Santa Fe Railway to offer lower freight rates to elevators, the release said, which can be passed on to the elevators' customers.
"The lower rates will bring more money back to the farmers in the Havre area, which is a boost for the farm economy of this community," Bob Way, grain merchandiser for the new joint venture, said in the release. " "This investment will guarantee the future of the grain handling business in our community for a long time to come."
Both facilities will be upgraded and new will be laid between them, at an estimated cost of $1.5 million, the release said.
"It became clear to both companies that a joint venture was the only way a shuttle facility could be built in Havre," Pete Vander Ven, general manager of the facility, said in the release. "A shuttle facility will allow us to continue to serve our Havre area customers now and in the future."
Harvest States is the integrated grains and foods group for CHS Cooperatives, a producer-to-consumer agricultural cooperative owned by about 325,000 farmers and their local co-ops from the Great Lakes to the Pacific Northwest and from the Canadian border to Texas. Harvest states operates a full complement of agricultural operations, from locally controlled farm supply to grain marketing, food processing and distribution.
ADM, which is headquartered in Decatur, Ill., is the world's largest processor of soybeans, corn, wheat and cocoa, as well as a leader in soy meal and oil, ethanol, high fructose corn syrup and flour. ADM has more than 23,000 employees, 368 processing plants and net sales of $18.6 billion for the fiscal year ending June 30, 2000.
On the 'net: Archer Daniels Midland Company: http://www.admworld.com