Cargill has partnered with a Brazilian cattle supplement company and acquired Anhambi Produção Animal factory.
The American multinational Cargill has partnered with Bom Negócio, from Patrocínio (Minas Gerais), to expand production of its line of mineral supplements (Probeef) for pasture-finished beef cattle. Cargill has also obtained approval from the Administrative Council for Economic Defense (CADE) for the acquisition of the Anhambi Produção Animal factory, announced in mid-2023. The company already plans to invest R$15 million locally.
In an interview with Valor, Celso Mello, managing-director of Cargill Nutrição Animal in South America, stated that the company opted for the partnership with Bom Negócio, because it will allow Cargill to advance more quickly in this market.
Today, the production of the Probeef line is concentrated in six Cargill units in the states of Goiás, Paraná, Santa Catarina, and São Paulo, and revolves around 100,000 tonnes per year. The partnership could increase this volume by at least 10%, estimated Mr. Mello.
The animal nutrition division is Cargill’s second-largest global business, with grains and processing operations as its flagship. The multinational’s global revenue reached $177 billion in the fiscal year ended in May of last year — the last reported result.
Within the animal nutrition segment, Brazil is the third-largest market, behind only the United States and China, and the fastest-growing one.
According to Mr. Mello, there is great potential for supplementation products for pasture-raised cattle in the country because 85% of the herd is finished in the field, not in feedlots. The animals require this reinforcement because tropical pasture tends to be poorer, although more abundant, than temperate climate pasture.
In Brazil, beef cattle products represent 35% of Cargill’s animal nutrition division revenue, followed by portfolios for pigs (30%), milk (20%), and poultry (15%). Business revenue is not disclosed. Unlike other giants, Cargill has no business in aquaculture and pets.
Source: Valor International
