Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Alliance Grain Climbs After Signing Deal With Cargill

Jan. 9 (Bloomberg) -- Alliance Grain Traders Inc., a Canadian seller of specialty crops such as lentils, rose the most in more than eight months after appointing Cargill Inc. to market a line of animal-feed ingredients.

Alliance rose 10 percent C$14.11 at the close in Toronto, the most since April 25. The Regina, Saskatchewan-based company’s shares fell 30 percent in the past 12 months.

Alliance signed up Minneapolis-based Cargill to be the exclusive agent for five years for its pulse-based products used to make animal feed, including pet foods, the company said today in a statement. Alliance, which is expanding its existing feed-ingredients business, plans to make the products in Minot, North Dakota.

The Cargill agreement “validates and adds credibility to Alliance’s business strategy,” said John Chu, a Toronto-based analyst at Alta Corp. Capital Inc. who rates Alliance outperform, the equivalent of a buy rating, with a C$16 12-month price target. “It also provides an incredibly strong partner in distribution, sales and marketing,” he said today by telephone.

Initially confined to North America, the tieup has the potential to be extended to Cargill’s operations in Asia, Europe and Latin America, he said.

“People realize there’s also the possibility of expansion into food ingredients, which could be considerably bigger than animal feed,” Chu said.

Forbes ranked Cargill the largest closely held U.S. company by revenue in a 2012 survey.

To contact the reporter on this story: Christopher Donville in Vancouver at cjdonville@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.