Cargill’s pork business has acquired a Texas-based hog production site from Smithfield Foods subsidiary Premium Standard Farms for approximately US$33m.
The facility has been idle since the spring of last year. Cargill said that it will be used to produce pigs that will be transferred to its Midwest grow-out facilities before slaughter.
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“In considering this site, we carefully examined factors that are important to us for long-term viability, such as environmental stewardship and animal welfare practices,” said Dirk Jones, president of Cargill’s pork operations, yesterday (27 April).
Cargill said that it would invest in improving and expanding the facility, as well as adding necessary infrastructure. The first group of animals produced at the site is expected to be harvested in 2012.
Commenting on the sale, Smithfield said that the move was in-line with its strategy to divest non-core operations and reduce exposure to volatile commodities markets.
“The sale of this hog production facility is a further extension of our strategy to reduce exposure to commodity businesses and shed non-core assets,” said Smithfield president and CEO Larry Pope.
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