GROWMARK Becomes New Owner of Grain Facility on Calumet River in Chicago
In a deal that closed Thursday, June 27, with COFCO International, GROWMARK became the sole owner of one of the most influential grain warehouses in the state of Illinois due to its connection with the Chicago Mercantile Exchange (CME). The purchase also marks the first time the facility will be owned by an American agricultural cooperative.
COFCO built the Cahokia grain terminal in 2017. Shortly after the completion of construction, GROWMARK purchased a small interest in the terminal. GROWMARK sold its minority stake in the Mississippi River grain terminal on Thursday, June 27. Simultaneously, GROWMARK purchased B-House from COFCO.
B-House, now renamed Lakeside Grain Trading, will add 11.5 million bushels of storage capacity to GROWMARK’s grain operations. GROWMARK and its members handle 1.1 billion bushels of grain and oilseeds annually.
The facility can accommodate lake vessels and larger ships to further diversify GROWMARK’s fleet of marketing options for grain, which currently includes Class 1 rail, barges, and trucks.
Lakeside Grain Trading affiliation with the CME as the last remaining par value delivery warehouse will also enable GROWMARK to further support the hedging and marketing strategies of its members.
Matt Lurkins, Vice President of Grain and Strategic Relationships for GROWMARK says this acquisition will be an important asset to the farmers GROWMARK serves. “This transaction reflects GROWMARK's commitment to increasing farmers' profitability while strengthening its presence along strategic waterways and ports throughout the Midwest,” he said.
“GROWMARK will always act in the best interest of the farmers we serve. Every day we try to maximize the value of the farmer dollars that have been entrusted to us. We are confident our investment in Lakeside Grain Trading will serve to execute on both of these strategic imperatives.” Lurkins said.
About GROWMARK
GROWMARK is an agricultural cooperative serving almost 400,000 customers across North America, providing agronomy, energy, facility engineering and construction, and logistics products and services, as well as grain marketing and risk management services. Headquartered in Bloomington, Illinois, GROWMARK owns the FS trademark, which is used by member cooperatives. More information is available at GROWMARK.com.