Singapore-based agricultural group Olam International has formed a joint venture with US commodities group Lansing Trade Group to originate and merchandise Canadian grains and oilseeds.
The move follows Ottawa’s decision to end the Canadian Wheat Board’s 76-year-old monopoly on sales of wheat and barley in the country.
Olam said the 50-50 JV will combine Olam’s international presence and customer relationships with Lansing’s North American merchandising experience. This “complimentary fit” will allow the firms to establish a “meaningful position” in the liberalised Canadian grains market, the companies suggested.
“We believe the individual company strengths of Lansing and Olam together will be able to deliver innovative solutions from origin to destination for the western Canadian grain customers,” Lansing president and CEO Bill Krueger commented.
The JV will look to meet food and feed demands in North American and international markets, the groups said.
KC Suresh, president and global head of Olam’s grains business, added: “The JV will leverage Olam’s in-house milling demand in Africa, its rapidly growing global trading platform and customer base along with Lansing’s deep knowledge of North American market. This will enable the JV to become a valuable contributor in the liberalised market.”
The venture, to be called Lansing Olam Canada, is expected to commence operations next month.