Cargill to keep investing

Cargill, the US provider of food and agriculture products, which logs $60bn in annual revenues, does not regard its recent acquisition of Comcereal Alexandria (which has secured the company 10% of the local grain storages) as its last operation on the Romanian market.

“This will not remain our only acquisition. We are always keeping an eye out for possible acquisitions. If you do not make a move, someone will always get ahead of you,” Dave Rogers, President CEO of Cargill International, told Ziarul Financiar.

Rogers says that Romania is one of the most attractive agricultural markets in the region, and feels that this sector will witness significant growth within the next 10 years.

“Romania is important because of its potential, but also because of its great geographical location, which gives it access to the Black Sea and the Danube,” Rogers states.

In fact, Cargill now owns, following successive acquisitions, grain storages located in the harbours of Galati, Braila, Alexandria and Giurgiu.

After the acquisition of Comcereal Alexandria, a transaction that has been recently concluded, Cargill became the largest owner of grain storages, with a storing capacity of 960,000 tonnes per year, accounting for about 10% of Romania’s capacity.

Cargill’s operates on two segments in Romania: grain trade and storage, which are joined by occasional market opportunities, such as the development of a sunflower programme.

Rod Sanderson, Cargill country manager for Romania, says that the storages bought by the company will require massive investments.
stelian.negrea@zf.ro