Market News

Key Developments

The companies are adopting various organic and inorganic growth strategies to sustain their market positions such as new product launch, geographical expansion, merger and acquisition.

In May 2017, Cargill entered in a joint venture with New Hope Group, China’s largest animal feed makers, to build a soybean crush plant, which is expected to have daily processing capacity of 50,000 tons of soybean to produce soymeal and oil. New Hope Group owned 51% stakes in joint venture and remaining 49% stakes owned by Cargill.

In May 2014, Cargill acquired Turyag, a Turkish fats and oils company, with the aim to expand Cargill’s portfolio with oils and fats in Turkish market. The acquisition included crush and refinery assets, sales and manufacturing organizations, related B2B brands, intellectual property owned by Turyag.

In January 2018, Astra Agro announced construction of a new palm oil mill plant in South Kalimantan with production capacity of 45 tons per hour, which is expected to begin operation in 2019.

For instance, in January 2017, Wilmar Kuantan Edible Oils, a Malaysian edible oils company, subsidiary of Wilmar International acquired Cargill’s edible oil facilities in Malaysia, which included palm oil refinery and oil storage facility. This acquisition helped Wilmar Kuantan Edible Oils to expand its product portfolio in Malaysian market.

In August 2018, Archer Daniels Midland Company purchased certain assets of Brazil-based Algar Agro, including oilseeds processing facilities in Uberlândia in the state of Minas Gerais and Porto Franco in Maranhão. This will enhance the company’s position in important Brazilian bottled oil markets.