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Cargill to build animal feed production plant in Brazil

Company also looks to purchase pig feed production facility in the same country

Brazil Map
K_O_A. | BigStock.com

Cargill will build a new plant to produce feed for beef cattle in Brazil and intends to purchase a pig feed manufacturing unit in the same country, the company said in separate press releases.

The new beef cattle feed plant will be constructed in Pimavera do Leste, Matto Grosso, and will aim to strengthen animal production in the region and the entire chain of raw materials, as well as to explore local alternatives such as dry distillery grains.

With an investment of BRL100 million (US$20.2 million), the approximately 11,000-square-meter facilities will be located on land already owned by Cargill. Construction will begin this month and is expected to be completed by December 2024. The unit, which will have production capacity of 120,000 tons per year, was designed to enable future expansion and could double its capacity.

The plant will meet the demand for pasture supplementation in the region and will strengthen the distribution network of the entire Nutron Probeef product line, reinforcing Cargill’s strategic positioning of proximity to its customers, as well as aiming at better value delivery.

“With this important expansion, we will reinforce the focus on the pasture supplementation segment, strengthening our performance in the market to better meet the demands. Our local presence will allow us to take advantage of regional competitive advantages, as well as contribute to the development of the municipality and producers,” said Celso Mello, director of Cargill Animal Nutrition.

Approximately 85 jobs will be generated during the construction phase, plus approximately 60 direct jobs at the beginning of operations with one shift, with an expected increase in vacancies as new shifts are created.

Purchase of pig feed plant

With the aim of expanding and strengthening its offer in the area of ​​animal nutrition, Cargill has submitted a request to the Administrative Council for Economic Defense (Cade)for the acquisition of an industrial plant dedicated to the production of ready-to-eat feed for pigs. The plant, owned by Anhambi Animal Production, is located in Pato Branco.

The purchase of the manufacturing unit, which has a production capacity of 60,000 tons of pelleted feed per year, will strengthen Cargill’s commitment to expanding markets and results, focusing on sectors such as animal nutrition.

“With a highly engaged team, this acquisition shows that the combination of Anhambi’s resources, a company that has been operating in the southern region of the country for over 35 years, with Cargill’s track record of innovation, enables the company’s robust growth in this sector, resulting in solutions to better serve our customers,” Mello said.

The acquisition is subject to approval by Cade.

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