ADM subsidiary invests in SA peanut producer

Golden Peanut Company, a wholly owned subsidiary of the giant US group, Archer Daniels Midland Company (ADM) and the world’s second-largest private company after Cargill, has acquired an 80% percent ownership stake in the assets of P-Farm Agents, one of South Africa’s largest peanut processors, and 50% ownership of South African Pecans.

P-Farm Agents’ assets include a bulk warehouse and a shelling plant capable of processing 20,000 metric tons of peanuts per year, and makes both Just Nuts-branded snacks and peanut butter. The company has about 85 permanent employees and has been privately owned by Alfonso Visser since its formation in 1997.

Visser will continue to control 20% of the company, which is located in Hartswater, Northern Cape, and the heart of the Vaalharts Irrigation Scheme. Golden Peanut intends to retain the vast majority of the company’s full-time employees, and will continue to utilise many of the seasonal and part-time workers traditionally employed by P-Farms Agents.

Golden Peanut also signed an agreement to acquire 50% ownership of South African Pecans, a pecan processor and marketer that will operate under the name GPC Pecan SA. Visser will continue to control the remaining 50%.

The peanut business will operate under the name Golden Peanut and Tree Nut SA. Golden Peanut plans to invest to increase the processing and warehouse capacity of both businesses. Both the peanut and pecan businesses will respect existing customer and supply arrangements after the transactions close.

“Our entry into the South African peanut market augments Golden Peanut’s presence in the United States and Argentina, enabling us to serve more customers from more points of origin,” said Kris Lutt, president, Golden Peanut Company.

“The regional origination and export capacity provided by P-Farms’ operations will help Golden Peanut advance toward our goal of becoming a global groundnut sheller and handler.”

P-Farm Agents: