January 9, 2008

Cargill sells Brazil animal feed unit to M.Cassab
 

Agribusiness giant Cargill Inc. has sold its animal feed unit in the southern state of Parana to Brazilian agribusiness company M.Cassab, press officers for the two companies confirmed on Tuesday (January 8, 2008).

Cargill's animal feed unit has left the premix business in Brazil, and will concentrate its resources in four other units specialized in animal feed in the country, a press officer told Dow Jones Newswires.

The value of the deal was not disclosed.

M.Cassab acquired Cargill's 25,000 square-meter animal feed factory in Cascavel in west Parana, which was built two years ago.

"M.Cassab aims to become the (Brazilian) market leader in animal feed," said Modesto Moreira, M.Cassab's director of operations, in a press release.

To become the market leader M.Cassab needs a presence in Parana, which is one of the major chicken and pig producing states in Brazil, said Moreira.

The deal increases M.Cassab's capacity by 50 percent to produce premix for animal feed. Premix is a combination of vitamins and minerals used in animal feed.

The location of the factory close to the Argentine border enables M.Cassab to start exporting animal feed to Argentina, according to the press release.