US beef giant Cargill to sell remaining feed lots
The US beef and grain giant Cargill is to sell of its remaining feed lots and focus on becoming a protein provider.
The feed lots in Kansas and Colorado have a capacity of approximately 155,000 cattle at any point in time and will be sold to Green Plains, an ethanol producer that already had a number of feed lots but is subject to a regulatory review.
Cargill said that selling its two remaining feed yards aligns with its protein growth focus by allowing the company to redeploy working capital away from cattle feeding operations to other investments.
John Keating, president of Cargill’s Wichita-based protein business operations and supply chain said that by partnering with Green Plains in a multiyear supply agreement, the Yuma and Leoti yards will continue to supply cattle to its beef processing facilities.
Over the past two years, Cargill has announced approximately $560m in acquisitions and capital investments to grow its North American protein business.
“We are committed to being the leading protein provider that nourishes people, animals and the planet in a safe, responsible and sustainable way while exceeding the expectations of our customers,” added Keating.
“We have great positive growth momentum and are confident it will continue to accelerate as we continue to help our customers’ and suppliers’ businesses, communities and colleagues thrive.”
Cargiill employs over 140,000 people in 66 countries and is responsible for 25pc of all US grain exports. The company also supplies about 22pc of the US domestic meat market, importing more product from Argentina than any other company and is the largest poultry producer in Thailand.