The Minnesota-based agri-giant announced earlier in June that it was in the process of acquiring the Brazilian swine feed producer Becker S Indústria de Nutrição Animal Ltda. The transaction is anticipated to be completed in coming weeks pending regulatory approval from the Administrative Council for Economic Defense (CADE).
The move is part of an effort to expand Cargill’s footprint in Brazil and grow “capabilities” related to the production of young animal nutritional products, said Scott Ainslie, VP and group director for Cargill’s animal nutrition business.
“The acquisition of Becker S Indústria de Nutrição Animal Ltda (Beckers) provides Cargill additional opportunities in the south region of Brazil, which represents more than 50% of the country’s swine production,” he told us.
The swine feed producer also has 13-years of experience working in Brazil and developing feed products with a focus on young animal nutrition, he said.
“With Beckers joining our business in Brazil, they will improve and expand our production capacity of young animal nutrition products in the south of Brazil,” he said. “The Beckers team will provide Cargill with deeper regional market knowledge, and a manufacturing plant located in a strategic geographical location for swine.”
The expansion in the south Brazilian market, combined with Beckers efforts is expected to be a “catalyst” in the research and development of new products for swine producers, added Celso Mello, executive director of Cargill Animal Nutrition for South America.
Acquisition details and market development
The Latin American region and Brazil, in particular, are an “integral part” of Cargill’s long-term strategy and vision, Ainslie said. Adding, “We see high potential for growth in this market.”
Buying the swine feed company also is a part of Cargill’s focus on expanding work with the swine industry and interest in supporting production efficiency, the company said. The deal is expected to bring together resources from both companies.
The acquisition covers all of Beckers’ facilities located in Quatro Pontes, Paraná, Brazil, Ainslie said. The feed production facility generates about 8,000 tons of complete feed a month along with nutritional products for young pigs. The company has about 60 employees.
“Beckers employees will become Cargill employees, and our goal is to bring them into Cargill, so we can continue to run the business without interruption,” he said.
The acquisition is intended to bring “benefit” to customers by providing improved service and new product offerings, he said.
The Beckers family also owns an animal production facility, but that is not included in the acquisition, he added.
Recent Cargill activity
However, Brazil is not the only country seeing interest from Cargill.
Earlier in the year, the company invested $20m in a new premix and supplement production facility in India. Cargill has an ongoing focus to expand the company’s footprint there.
The company opened the doors at a new premix production facility in Jordan to support market needs and livestock producers throughout the Middle East in April. Livestock production efforts in the region focus on raising poultry, dairy cows and fish.
In May, Cargill invested in a new premix production facility in China – the plant is expected to open in late 2020. The company also invested in the Israel-based start-up and cultured meat company, Aleph Farms.
Earlier this month, Cargill announced that it was committing to invest $30m in seed funding to help protect forests and native vegetation in Brazil. The company also is in the process of developing a soy action plan.