When one of Mexico’s leading grain producers needs help funding the expansion of its business, Cargill offers a unique support plan.
Situated on the western coast of Mexico, the sprawling grain fields of Sinaloa have helped the area build its reputation as the “Breadbasket of Mexico.” This region is also home to JOVA, a top grain producer for the state for over 25 years. The high-quality supplier yielded nearly a million tons of grain each year in the form of products like chickpeas, sorghum and white corn, a staple in Mexican households. When JOVA developed a plan to increase the storage capacity of its elevators—an effort that would boost the amount of grain it was able to supply—Cargill helped finance the operation.
Between its 15 grain elevators in Sinaloa and an additional three in the nearby state of Sonora, JOVA was able to hold over 700,000 tons of grain at a given time. In order to ensure continued growth, even more storage was necessary. Cargill had collaborated with JOVA previously and was familiar with its trusted reputation as a reliable grain supplier, so the partnership was a natural fit. Cargill provided its trade and structured financing expertise, and helped the Mexico-based grain producer finance more crops and storage warehouses.
The expansion’s success inspired the companies to deepen their partnership. Cargill’s grain and oilseed business began purchasing grain products directly from JOVA, making it Cargill’s second-largest grain supplier in Mexico.
“Cargill is a reliable and honest buyer that also offers very competitive financing.”— Joel Valenzuela, Owner and CEO, JOVA
As demand for grain across Mexico’s markets increases, the relationship continues to take on new complexity. Cargill is developing innovative financial and commercial solutions exclusively for JOVA. “Cargill’s ability to combine these services presents a great value proposition for our business,” said JOVA’s CEO, Joel Valenzuela. “[It] helps us continue to produce the grain that is in such high demand in Mexico.”