Market share is never a given. The grain business remains very competitive at both the local and export levels, she says. Locally, grain companies compete with processors and livestock feeders. The grain trade has changed a lot since the days of big sales to government buying agencies, with companies selling to more buyers. With some exceptions, Continental Grain was the only firm exporting HOC for Optimum, which is a joint venture of DuPont and Pioneer Hi-Bred International.
Optimum officials see that as an opportunity.
From my standpoint, it's a good news message. Optimum was starting negotiations with Cargill. Others familiar with the business say Optimum might be better off not seeking an exclusive marketer and working with Farmland, ConAgra and others. Reaction to Cargill's move has been negative on many fronts. Representative Collin Peterson of Minnesota, who opposes the deal because it concentrates the grain industry, suggested it's likely a grain marketing board similar to the Canadian Wheat Board would be formed as a result of the Cargill purchase.