April 5, 2011
Bunge and Senwes to formulate grain and oilseed joint venture
A joint venture agreement to formulate grains and oilseeds operations in South Africa, which will cater to the domestic market and export products to other countries in Africa, has been formally declared by Bunge Europe and Senwes Limited, a South African agribusiness company, on April 1.
The agreement is expected to become effective during the course of this year, subject to receipt of regulatory clearances, including from the South African Competition Commission.
Bunge will provide its expertise in global commodity markets as well as its specialised international logistics capabilities. Senwes will contribute its expertise and access to local and regional grain markets, as well as its high-quality infrastructure. The integration of local, regional and global grains and oilseeds value chains is expected to enhance efficiencies in the local and regional markets, bring value to producers and end users of agricultural commodities and contribute to food security in the region.
"This joint venture represents a solid platform for Bunge''s growth in Southern Africa," said Jean-Louis Gourbin, chief executive officer, Bunge Europe. "Bunge has found the right partner to expand its activities in the region and complement its expertise and competitive advantages in logistics, access to global markets and risk management."
Senwes will benefit from Bunge''s expertise and capabilities in international grains and oilseeds origination, logistics and risk management.
"Senwes is excited to be able to share in this opportunity, as its growth strategy of product and market risk diversification is being executed, amidst volatile and uncertain global economic times, which will contribute to ensure the sustainability of our business while adding value to our customer base and contributing to the development of the African sub region," said Francois Strydom, managing director of Senwes.