As low price keep the industry under pressure, consolidation continues within the U.S. grain sector as grain handler Lansing Trade Group is set to acquire Interstate Commodities for an undisclosed amount.
Founded in 1922, Lansing, which is 39 percent owned by The Andersons, handles approximately 1 billion bushels of corn per year, supplying markets in the U.S., Canada, and Mexico. In 2015 Lansing sold a 20 percent equity stake for $127.5 million to New Hope Liuhe Investment Inc.- a U.S. subsidiary of Chinese hog and feed company New Hope Liuhe Co. Ltd.
Interstate handles 200 million bushels of grain per year, generating $2 billion in annual sales at elevators and rail terminals across South Dakota, Nebraska, Illinois, Ohio, and other U.S. states. Combined, the two companies could account for the handling of as much as 7 percent of the U.S. corn supply.
Last year, Interstate sold two Ohio grain elevators to Smithfield, the largest pork producer in the world, who is strategically trying to eliminate grain handlers and buy its grain supply directly from farmers.
Lynda Kiernan is Editor with HighQuest Group Media and of the Oilseed & Grain News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at email@example.com.