Brazil: Cargill to build feed supplement plant in Mato Grosso, US company also looks to acquire pig feed manufacturing facility

By Jane Byrne

- Last updated on GMT

Cattle grazing in the Cerrado region of Mato Grosso state in Brazil © GettyImages/FernandoPodolski
Cattle grazing in the Cerrado region of Mato Grosso state in Brazil © GettyImages/FernandoPodolski

Related tags Cargill Brazil Mato Grosso mineral supplements Cattle

The Brazilian unit of US agribusiness giant, Cargill, is set to construct a new facility in Mato Grosso, Brazil.

The plant will produce mineral supplements for cattle raised on pastures, according to a Reuters story.

Mato Grosso is Brazil's biggest soy and corn producer as well as the home to the country's largest cattle herd.

Building of the production site will get underway this month, with the plant scheduled to be operational by the end of 2024. Cargill said it will invest 100 million reais (US$20m) in the venture.

The US group also said that it intends to acquire a factory in Parana state that produces swine feed. The deal, closed for an undisclosed sum, was submitted for approval by local antitrust authorities.

Revamp of Australian oilseed operations

Last month, Cargill announced​ that it was investing US$50m into an upgrade and expansion of three oilseed crush facilities in Australia.

The revamping project includes an upgrade and restart of Cargill’s Narrabri plant which has been modified into a dedicated cottonseed dehulling plant. The hulls from Narrabri will cater to domestic feedstock markets and cottonseed meats will be transported to Newcastle where it will be further processed into oil and meal.

The plant in Newcastle, New South Wales, is also being upgraded to enable the crush of cotton seed, along with existing processing capacity of canola. This will significantly increase the plant’s total crush capacity. Other facility upgrades will include improvements in oilseed processing equipment to serve the increased throughput and the cottonseed meal product, higher transport efficiencies and improving farmer delivery experience.

Additionally, the company’s Footscray plant will also see an increase in canola crush capacity with upgrades to the processing equipment and modifications to drive logistical efficiencies and better, more efficient customer experience.

Australian canola is in high demand globally for its use across food products, biodiesel and in feed. The major export destinations for canola oil are China, Vietnam, and New Zealand.

With this investment, Cargill said it also expects to be able to supply new domestic customers with cotton seed hulls and oil. 

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