Ruralco, CHS flag joint venture

Agribusinesses take equal stakes in grain marketing company Agfarm.

Ruralco Holdings Ltd has announced a joint venture with farmer-owned cooperative and global agribusiness CHS Inc.

In a statement to the Australian Securities Exchange, Ruralco said the joint venture will be 50% owned by each company, operating 100% of grain marketing business Agfarm.

Agfarm has been part of the Ruralco Group since 2009 when Ruralco took a strategic stake in the business and its management team will stay the same.

Ruralco managing director John Maher said Agfarm has grown strongly in recent years because of its strong customer focus and access to capital from Ruralco.

"With two well funded owners Agfarm will continue to have access to capital to grow," Mr Maher said.

"Customers will now also benefit from CHS' innovative solutions for input financing along with their international marketing expertise, global grain market intelligence and access to other new products and solutions."