October 16, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

The rise of renewable fuels and the increased occurrence of deals in the soy crushing industry are deeply intertwined, with each sector supporting and propelling the other. As the world continues to transition toward a more sustainable and eco-friendly energy future, the soybean will play a critical role as a renewable resource, driving economic growth and environmental benefits in the process. This connection is a testament to the ever-growing importance of sustainable energy sources and the pivotal role that soybeans play in this transition.

Biodiesel and renewable diesel have gained significant momentum due to environmental concerns and the need to reduce greenhouse gas emissions. These fuels are derived from a variety of sources, with soybean oil being one of the most prominent and environmentally friendly options. As such, both Cargill and Bunge have been players in recent deals connected to their soy crushing businesses. 

Cargill

Viserion Oilseed Processing, LLC (“Viserion”), a subsidiary of Pinnacle Asset Management-backed Viserion International Holdco, announced that its subsidiary Elian Barcelona has entered into an agreement to acquire Cargill’s soybean crushing facility located in Barcelona, Spain, for an undisclosed amount. 

Located at Moll Álvarez de la Campa in Barcelona, this facility is a key infrastructure element of the globally integrated supply chain serving the Catalan, Spanish, and European feed and food ingredients supply chains. 

“The acquisition of this strategically located plant, integral to Catalonia’s food supply, deepens Viserion International’s long-term commitment to the European market,” said Aaron Wiegand, CEO, Viserion International. “We look forward to leveraging our strong U.S. infrastructure and dedicated, experienced team to expand the Viserion platform both organically and opportunistically, and to further grow our international grain and food product handling and trading business.”

Elian Barcelona stated that it intends to expand the facility’s production capabilities to include a wider range of sustainable and innovative food and specialty feed ingredients vis-a-vis concentration, and textured protein – two factors key to supporting the delivery of farm-to-food products across the European and Mediterranean markets. 

“We are proud to acquire and advance this important Catalan processing plant as we build a more resilient food system across Europe,” said Andres Martin, founder and general manager, Elian Barcelona. “Sustainability is our core foundational value, and we believe that this strategic asset – coupled with Viserion’s scale, resources, and expertise – will allow us to better align our services with consumers and food system trends, enhance European food security, and resist supply chain disruptions.”

“We are grateful to Catalonia’s public institutions, including Generalitat de Catalunya and Acció, for their support,” continued Martin, “…and we look forward to innovating healthier and more reliable ingredient solutions through this plant for a more sustainable world.”

Bunge

As a region, South America has experienced a surge in soybean crushing activity, solidifying its position as a global powerhouse in the production of soy-based products. This uptick in soy crushing, driven by abundant soybean production, export opportunities, and evolving market demands, has far-reaching economy, agriculture, supply chain implications, and underscores the region’s critical role in global soybean trade and renewable fuel production.

With a high profile in Brazil’s soy and soy crushing space, Bunge has recently announced that Bunge Alimentos, a Brazilian unit of Bunge, has acquired a majority of Brazilian soybean crusher CJ Selecta S.A. from South Korean food giant CJ CheilJedang Corp. for an estimated $356.3 million.

CJ CheilJedang – a producer and supplier of vegetable proteins to the animal feed, chemical, and pharmaceutical industries – initially acquired CJ Selecta (originally named Selecta) in 2017, and grew it to post revenue of 1.13 trillion won ($840 million) last year.

Earlier this year, it was reported that U.S. Bunge re-opened negotiations for a potential acquisition in the Brazilian soybean crusher, after CJ CheilJedang walked away from negotiations for the sale of a controlling interest in CJ Sellecta S.A. in 2022. 

The Korean company stated that it plans to boost its bio businesses as part of its long-term growth strategy after its biocompatible polyester materials received U.S. FDA approval for use as food packaging in May 2023, and its subsidiary CJ Bio made an undisclosed investment in Australian biotech company Provectus Algae in March of this year.

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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