Deals
Thin Margins Get Crop Giants Working Together as M&A Falters
- Consolidation is ‘easier said than done,’ ADM’s Roig says
- Andersons CEO Bowe sees swaps of individual assets continuing
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For years the agriculture industry has been expecting a wave of consolidation that just hasn’t come. To battle razor-thin margins, the world’s top crop traders have come up with a new strategy: working together.
Rivals Archer-Daniels-Midland Co. and Cargill Inc. now have a soybean joint venture in Egypt and recently swapped grain elevators in the U.S. Midwest. The two firms, along with Bunge Ltd., Louis Dreyfus Co., Glencore Plc and China’s Cofco International Ltd. are also teaming up in a blockchain technology project that will streamline shipping transactions and reduce costs.