Cargill to sell remaining two feedyards in Colorado, Kansas
Company redeploying working capital to fuel additional protein business growth.
Apr 26, 2017
Cargill has reached an agreement to sell its beef cattle feedyards at Leoti, Kan., and Yuma, Colo., to Omaha, Neb.-based Green Plains Inc., a vertically integrated ethanol producer with existing feedyards in Kismet, Kan., and Hereford, Texas.
The transaction will be finalized once a definitive agreement and regulatory review are completed.
Green Plains will supply cattle to Cargill through a new multiyear agreement, and the approximately 90 people currently employed at Cargill’s Colorado and Kansas feedyards will be offered positions with Green Plains.
The feedyards being sold have a capacity of approximately 155,000 cattle at any given point in time.
“Selling our two remaining feedyards aligns with our protein growth focus by allowing us to redeploy working capital away from cattle feeding operations to other investments,” said John Keating, president of Cargill’s Wichita, Kan.-based protein business operations and supply chain. “By partnering with Green Plains in a multiyear supply agreement, the Yuma and Leoti yards will continue to supply cattle to our beef processing facilities at Ft. Morgan, Colo., and Dodge City, Kan., ensuring consistent, high-quality beef products for our customers.”
Over the past two years, Cargill has announced approximately $560 million in acquisitions and capital investments to grow its North American protein business.
“We are committed to being the leading protein provider that nourishes people, animals and the planet in a safe, responsible and sustainable way while exceeding the expectations of our customers,” Keating added. “We have great positive growth momentum and are confident it will continue to accelerate as we continue to help our customers’ and suppliers’ businesses, communities and colleagues thrive.”