May 23, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Over the past month, Cargill has made a series of announcements detailing the investments it is making in the U.S. Pacific Northwest, Australia, and Brazil to expand and enhance its grains, oilseed, and feed business. 

The company’s most recent disclosure outlines its plans to build a new animal feed facility in Granger, Washington, that will have a sole focus on producing feed for current and potential retail locations in the region, explaining, “The trend for ranching and farming, especially rural lifestyle farming, is not showing any signs of slowing down.”

To be located at the same site as Cargill’s bulk dairy feed mill, this new stand-alone facility will include pellet mills, packaging lines, an extensive warehouse, office space, break rooms and locker rooms for employees, and, when completed in the fall of 2024, will have a production capacity of 125,000 tons of feed per year to be sold under Cargill’s Nutrena brand. 

“The new Granger retail feed facility expands our existing retail feed footprint, enabling us to better service our retail customers and their farm and ranch customers in the Pacific Northwestern region,” said Mariano Berdegue, regional managing director, Cargill Animal Nutrition – North America. 

In addition to meeting the needs of retail consumers, Cargill noted that the new facility will present a new channel for local farmers to sell their crops, and by meeting local demand, will eliminate approximately 2 million truck miles and 5,000 tons of CO2 per year. 

“Demand for our Nutrena, ProElite, Record Rack, Black Gold, and Sunglo products has never been stronger,” said Berdegue. “It has been our privilege to feed over 52 million animals over the last 12 months, and our sights are set even higher for the future.”

Australia

News of the Washington project comes only weeks after Cargill announced it was investing $50 million on upgrades and expansionary improvements at its oilseed crush facilities in Newcastle, Narrabri, and Footscray, Australia, in order to keep pace with climbing international demand for canola and cottonseed oils, and to improve access to global markets for the country’s farmers. 

The company has had a presence in the country since 1967, investing and growing its business as a major marketer of Australian grains and oilseeds on the domestic and international  food processing, animal feed, and meat industry markets since. 

Used across a range of products, including biodiesel and feed stocks, Australian canola is in high demand from global markets. As a key supplier of high-grade canola oil to customers in Australia and Asia, Cargill stated it is investing to expand its crush capacity for increased production of canola oil and meal, as well as cottonseed oil and meal. 

Projects will include an upgrade and restart of the company’s plant at Narrabri, which has been retrofitted into a cottonseed dehulling facility. The hulls will head to the domestic feedstock industry, while the cottonseed meat will be transported to Newcastle where it will be processed into oil and meal.

The Newcastle facility is being upgraded to add cottonseed processing to its existing canola processing capabilities. It also will see upgrades to its equipment for increased throughput, and for efficient transport and delivery.

The company’s Footscray plant also will be upgraded for higher canola crushing capacity, better equipment, and modifications that will increase efficiencies, both logistically and for the customer experience.

“Cargill plays a major role in connecting farmers, and customers to the food and ingredients they need,” said Zsolt Kocza, managing director, Cargill Agriculture Supply Chain in Australia and SSEA.

“This investment in increasing our crush capacity will help Cargill better serve the growing demand for canola and cottonseed products from customers both in Australia and across Asia. It will also connect Australian farmers to international markets, creating more demand for locally grown canola.”

Brazil 

Heading to South America, Cargill’s Brazilian unit is also planning for the construction of a new plant in Mato Grosso that will provide mineral supplements for pasture-raised cattle.

As Brazil’s largest producer of soy and corn, and the location of the country’s largest cattle herd, Mato Grosso is an ideal location for such a project. Details are sparse, but Cargill will be investing US$20 million in the venture, which is scheduled to be completed by the end of 2024. 

Additionally, the company made mention that it plans to acquire a hog feed production facility in Parana for an undisclosed sum, and has submitted the deal to local regulators for approval. 

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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