Global Egg to purchase Cargill Etobicoke egg facility
Etobicoke, Ontario, Canada – Oct. 20, 2016 - Global Egg Corporation has entered into an agreement with Cargill to purchase the latter’s Etobicoke egg processing facility. Terms of the sale are not being disclosed. The majority of the facility’s 53 employees will be offered positions with Global Egg. Displaced employees will receive severance and other support from Cargill. Consummation of the transaction is anticipated to conclude this fall. Cargill has owned the facility since 2006.
“Given a recent shift in demand for cooked egg products like those produced at Etobicoke, which resulted from changing customer requirements, we feel the facility is a better fit with a firm such as Global Egg Corporation,” said Chris Roberts, president of Cargill’s North America egg business. “We know Global Egg well and the Etobicoke plant complements their existing egg processing footprint. We will work closely with them to ensure a seamless transition that meets all customers’ needs.”
Cargill’s U.S. egg processing facilities are not affected by this sale. The company’s U.S. egg business remains an integral part of Cargill’s protein growth strategy. Over the past year, Cargill protein group’s customer-first focus has led to $500 million of investments to grow this Wichita, Kansas-based business. Those investments include construction of a $50 million beef distribution center at Dodge City, Kan.; $111 million for conversion of a facility in Nebraska to better serve cooked meats customers; $27 million to expand egg processing capabilities in Michigan; and the purchase of a beef processing facility in South Carolina and a custom cooked meats business with operations in Fort Worth, Texas, and Nashville, Tenn.
“Global protein demand continues to increase in concert with population growth and the movement of more people into the middle class around the world,” explained Roberts. As household income improves, people typically consume more complex proteins in the form of meat, dairy, egg and fish products. We believe we are in the sweet spot to provide more people with nutritious, wholesome, sustainable, abundant and affordable protein now, and in the future.”
Cargill’s 160,000 employees across 70 countries work relentlessly to achieve our purpose of nourishing the world in a safe, responsible and sustainable way. Every day, we connect farmers with markets, customers with ingredients, and people and animals with the food they need to thrive. We combine 154 years of experience with new technologies and insights to serve as a trusted partner for food, agriculture, financial and industrial customers in more than 125 countries. Side-by-side, we are building a stronger, sustainable future for agriculture.