Cargill to sell remaining two feed yards in Colorado and Kansas to Green Plains Inc.
Redeploying working capital to fuel additional protein business growth, assured cattle supply, led to decision
WICHITA, Kan. – April 26, 2017 – Cargill has reached an agreement to sell its beef cattle feed yards at Leoti, Kan., and Yuma, Colo., to Omaha-based Green Plains Inc., a vertically integrated ethanol producer with existing feed yards at Kismet, Kan., and Hereford, Texas. The transaction will be finalized once a definitive agreement and regulatory review are complete.
Green Plains will supply cattle to Cargill through a new multiyear agreement. The approximately 90 people currently employed at Cargill’s Colorado and Kansas feed yards will be offered positions with Green Plains. The feed yards being sold have a capacity of approximately 155,000 cattle at any point in time.
“Selling our two remaining feed yards 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-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 Fort 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,” added Keating. “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.”
Mike Martin, 316-291-2126, [email protected]
Cristy Tran, 316-291-2624, [email protected]
Cargill’s 155,000 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 155 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.