Agribusiness giant also divests Agro Provimi in Poland

Egypt: Cargill to spend €100m in expansion of soy crushing facility

By Jane Byrne

- Last updated on GMT

Egypt: Cargill to spend €100m in expansion of soy crushing facility

Related tags Soybean meal Soybean Cargill

Cargill is ploughing US$100m into its soybean oil crush plant in Egypt in an attempt to double its output and meet the increasing demand there for soybean meal and vegetable oil.

The agri-business group said the expansion at its Borg El Arab located crushing operations will add a 3,000 metric ton production line to Cargill’s existing facility to maximize economies of scale and efficiencies in its production process for both soybean meal and oil.

“The food and feed sectors in Egypt have grown significantly over the past few years, and while the market remains competitive we are confident this investment will not only enable us to provide the additional capacity needed to service the market but will provide opportunities to supply quality products, such as high protein meal which are increasing being sought,”​ a spokesperson based at the Minneapolis headquartered Cargill told FeedNavigator today.

The company currently produces crude soybean oil for the Egyptian market and supplies soybean meal to the poultry and aqua feed industry there.

Soybean meal demand

The spokesperson noted growing demand for both soybean meal and vegetable oil in the country.

“Soybean meal demand in Egypt is driven by the increasing demand for animal feed with the expanding production of poultry, fish, beef and dairy products locally. The soybean oil market is in a supply deficit with vegetable oil being imported to meet the needs not currently covered by the local crush industry.”

Construction at the soybean crush operations is due to commence in November this year and the expanded facility is set to be on stream by mid-2017.

The company is also constructing an additional 42,000MT of storage capacity within its existing grain handling and storage premises at the port of Dekheila in Alexandria.

Cargill said both investments fit in with its strategy of growing its business in Africa and the Middle East.

The representative said the agri group is continuing to assess “a number of initiatives to further progress our business strategy and to strengthen our position in the region.”

Polish divestment

Meanwhile, Cargill has just signed a deal to sell its Agro Provimi operations in Poland to local meat processing firm, Polski Koncern Mięsny DUDA (PKM Duda) for around €6.7m (US$7.48m).

The spokesperson told us that divestment will enable the US firm to focus on its core capabilities in that country in terms of animal nutrition:  “We are confident that PKM Duda is committed to animal production market and will provide better strategic focus, expertise and long term success for the business and its employees.”

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