Cargill announces $30 million investment in Ecuador shrimp feed facility project; enters into joint venture with Naturisa
Deal gives Cargill opportunities in Ecuador, a critical aquaculture growth market
Guayaquil, Ecuador - July 21, 2015 – Driven by a historical shift in food production with farmed fish surpassing global beef production for the first time in modern history, Cargill today announced it has formed a joint venture with Naturisa to build a USD $30 million shrimp feed facility near Guayaquil. The transaction involves the construction of a new world-class shrimp feed mill that will produce 130,000 metric tons annually and employ 260 people when the facility is fully operational in 2017.
Cargill will own 75 percent and have managerial control of the day-to-day operation, while Naturisa will retain 25 percent in the joint venture. The investment creates a unique opportunity for Cargill to grow in aquaculture in Ecuador and opens the door to future investment opportunities for other commodities in the market. Through its Americas Marketing Group, Cargill has imported agricultural commodities into Ecuador for a number of years. Naturisa, Ecuador’s second largest shrimp producer and the fourth largest exporter in the country, is a leader in the aquaculture industry.
“This joint venture with Naturisa positions us to become one of the largest producers of shrimp feed in Latin America,” said Sarena Lin, president of Cargill’s animal feed and nutrition business. “It creates new opportunities for both organizations’ customers and stakeholders. Combining Cargill’s vast resources and global reach with Naturisa’s expertise will allow the new organization to provide the best solutions to our customers and ultimately support the growth of Ecuador.”
The transaction is aligned with Cargill’s animal nutrition business’ growth strategy. The new state-of-the-art facility will combine the latest feed safety technology and product quality capabilities. The Guayaquil facility positions Cargill to achieve its growth plans through increased production capacity and flexibility in product manufacturing, formulation, packaging and logistics for competitive offerings in both Ecuador and Peru. The facility will produce shrimp feed for animal producers marketed under the Purina® brand throughout the Latin American region.
“Naturisa and Cargill share a commitment to high-quality products and services, sustainable, responsible business practices, and both organizations have strong visions for future growth and aspire to be leaders in the aquaculture industry, which makes this partnership an ideal fit,” added Ricardo Sola, general manager of Naturisa.
Cargill provides food, agriculture, financial and industrial products and services to the world. Together with farmers, customers, governments and communities, we help people thrive by applying our insights and 150 years of experience. We have 152,000 employees in 67 countries who are committed to feeding the world in a responsible way, reducing environmental impact and improving the communities where we live and work. For more information, visit Cargill.com and our News Center.
About Cargill Animal Nutrition
Cargill's animal nutrition business has more than 18,000 employees at more than 250 facilities in 37 countries offering a range of products and services to feed manufacturers, animal producers, and feed retailers around the world. In 2011, Cargill completed the acquisition of Provimi, a global leader in premix and animal nutrition solutions, adding to Cargill's portfolio of animal nutrition offerings. Today, Cargill's animal nutrition business offers a range of compound feed, premixes, feed additives, supply chain and risk management solutions, software tools and animal nutrition expertise that is unmatched in the industry. Cargill’s animal nutrition business has an agreement with Nestle to use the Purina brand on animal feed outside the United States. For more information about Cargill Animal Nutrition, visit: http://www.cargill.com/feed.
Naturisa’s shrimp production business in Ecuador employs more than 2,000 people and produces approximately 16,000 metric tons of shrimp, which is exported to Europe, the United States and Asia. Shrimp is the second largest export item in Ecuador with total exports of $2.3 billion and approximately 277,000 metric tons in 2014. Naturisa also holds a 50 percent ownership in Songa, the fourth largest shrimp processing and export plant in Ecuador. Songa processes 100 tons per day of shrimp with expansion plans underway to produce 180 tons per day. Songa is the largest Ecuadorian exporter of shrimp to the United States. It exported 20,000 tons of shrimp in 2014.