Texas-based Friona Industries, LP is expected to purchase two Cargill-owned feedlots in Dalhart and Bovina.
According to Reuters, the sale of both beef feedlots will allow Cargill, a top U.S. meat processor, to redeploy millions of dollars a year into growing its protein business.
“This decision makes sense particularly because we have a terrific and longstanding business relationship with Friona Industries, which already supplies Cargill with excellent cattle from their four feedyards. The Texas feedyards we are selling will continue to supply cattle to our beef processing plants while also enhancing Friona Industries’ feedyard portfolio,” said John Keating, president of Cargill’s Wichita-based beef business.
The sale of the feed yards aligns with the company’s evolving protein business strategy.
“We are investing to better serve and delight our current and future customers,” Keating said. “Anticipating the future direction protein demand is headed, we believe it is wise to redeploy capital away from feedyard and cattle ownership to projects that enhance our capabilities and provide greater value to our customers and consumers, now and in the future.”
About 90 people currently work at the two feedyards. The company reports they will be offered positions with Friona Industries.
Cargill will retain its feedyards in Yuma, Colo. and Leoti, Kansas.