Farmer-owned CHS Inc, the USA’s largest co-op, is buying a grain facility in Holdrege, Nebraska, as part of its strategy to invest in key regions to improve market access and drive efficiency.
The purchase of the Scoular grain facility is tentatively set to close this month, with the site intended to serve primarily as a seasonal overflow facility for the existing CHS location in Holdrege.
Together, says CHS, the Holdrege facilities will strengthen the grain origination and transportation capabilities for the co-op, “creating end-to-end value while enhancing market access for growers”.
“These changes are designed to create a stronger, more efficient network that benefits growers,” said Kent Mulder, vice president of operations. “The enhanced speed and space of the Holdredge facility create global market opportunities for Nebraska farmers.”
The strategic alignment plan also sees CHS sell its Roseland and Bladen, Nebraska, facilities to Cooperative Producers, Inc. (CPI), a farmer-owned co-operative headquartered in Hastings, Nebraska.
CHS says it is working closely with CPI to ensure a smooth changeover of the locations.
“We are confident these facilities will provide strategic value for CPI given the alignment with their trade territory,” said Mulder. “This realignment also creates additional opportunities to strengthen and maximise efficiencies for the co-operative system in Nebraska.”
