Singapore-headquartered agri-commodities trading firm Agrocorp International has expanded its international footprint by acquiring Australian pulses and seed processor Associated Grain. Financial terms of the transaction were not disclosed.
Associated Grain is one of the largest independently owned pulses processors in Australia. The acquisition consolidates Agrocorp’s leading position in the pulses industry, the firm said.
Associated Grain operates four factories in Dalby, Queensland, with a cumulative storage capacity of 25,000 metric tonnes and an ability to handle 200,000 tonnes a year. It processes and distributes pulses, which are the edible seeds of various crops such as chickpea, dry pea, pigeon pea, lentils and mung bean as well as Chana dal – a type of legume that is common in India, Nepal, Pakistan, Sri Lanka and Bangladesh.
As part of the acquisition, Agrocorp has committed to new infrastructure with an additional 2,400mt of silo storage capacity under construction. It has also committed to R&D projects to develop new seed varieties in collaboration with a research institute in Queensland.
The foray into Australia comes on the heel of the launch of a new rice production and export facility in Myanmar recently.
Under the company’s expansion plan, Agrocorp will build two pulses mills in India and a rice mill in Bangladesh at an estimated cost of $47 million. The International Finance Corporation announced last month that it will inject $12.5 million in the Singapore firm to help it expand its operations.
The Global Agriculture and Food Security Programme will participate by extending a loan of up to $2.5 million towards the project. Agrocorp is already studying the feasibility and locations for these India and Bangladesh plants, according to the IFC announcement.
The company also said it will add to its existing plants in Canada, where it first entered the process business in 2012.
Founded in 1990, Agrocorp’s business has reached 14 countries with the latest acquisition. It moved 9 million tonnes across commodities such as grains, pulses, sugar, oilseeds, cashews and cotton and sees sales revenue exceeding $3 billion in 2017.