Asian growth drives CHS grain profits
months results, following strong growth in its grain and food
processing segments.
Between 1 September and 28 February, net income within the company's grain and processing segments rose to $30m and $42m respectively, compared to $17.5m and $17.2m over the same period in 2006. The results highlight the growing opportunities for grain processors in the emerging markets of the Asia Pacific region. With the company now exporting 60 per cent of its total production output from its US-based headquarters, CHS stressed that the region was becoming increasingly significant for its products. "Asia, including China, has long been a significant export destination for CHS," said a company spokesperson to AP-Foodtechnology.com, FoodNavigator-USA.com sister site. "In fiscal 2006, our sales to Asia were $904 million." As a result, CHS said it would continue expanding its operations within the region to cater for the demand. Just last week, the company revealed it had opened a marketing office in Hong Kong to strengthen its presence in Asia. The move will allow the group to better adapt to the challenges it faces in the region. according to Rick Browne, CHS' senior vice president for grain marketing, "This Hong Kong office is an important step for CHS in enhancing service and execution to our current Asian customers, gaining first-hand market information and promoting CHS as an attractive grain-supply source to new customers and the industry," he stated. The company said that it expected continuing economic reform, particularly in China, to maintain long term growth in the region. "Demographics and demand projections certainly indicate opportunity in Asia and China," said the company spokesperson. "The nation's emerging middle class is demanding greater quantities of high quality food, in particular animal protein, pointing to increased grain imports and opportunity for processing."
