CHS, Cargill look at broadening scope of TEMCO j.v.
August 5, 2011
by Josh Sosland
MINNEAPOLIS — Cargill and CHS Inc. on Aug. 4 said the two companies were in discussions to expand its TEMCO L.L.C. joint venture to include other export assets owned by the two companies. Currently TEMCO is a 50-50 joint venture operating an export facility in Tacoma, Wash., focused on exports of corn, soybeans and sorghum to the Asia Pacific. The company said the venture “has been successful” prompting consideration of a broadening of the agreement in view of “anticipation of continued demand for wheat, feed grains, oilseeds and byproducts into Asia.” TEMCO was established in 1992 as a general partnership between CHS and Continental Grain Co. According to CHS filings with the Securities and Exchange Commission, the partnership, an acronym for Tacoma Export Marketing Co., was created for the purpose of buying, selling, storing and handling feed grains and oilseeds for export from the Pacific Northwest, principally through an export facility leased by Continental at Tacoma. With its 1999 purchase of the global grain business of Continental, Cargill took over Continental’s stake in TEMCO, an arrangement that was converted to a limited liability company by Cargill and CHS in 2002.