Cargill announced the private company will sell two of its beef cattle feed yards in Bovina and Dalhart Texas to Amarillo-based Friona Industries.
In a company news release, Cargill says terms of the deal are not being disclosed and finalization will take place upon the completion of agreements and any required regulatory reviews. Cargill will retain its cattle feed yards in Colorado and Kansas.
The sale is the latest in Cargill’s move to cut cost and refocus its operations by exiting some lower-margin businesses. Just last week, Agrium announced it will purchase Cargill’s agriculture retail business in the United States.
John Keating, president of Cargill's beef business, says selling the feed yards in the Texas Panhandle allows the company to “redeploy many tens of millions of dollars annually into investments that will help us grow our protein business.”
The approximately 90 people who currently work at Cargill's Bovina and Dalhart feed yards will be offered positions with Friona Industries.
Source: NAFB News
