February 9, 2021
Cargill seeks acquisitions to extend into seafood production and processing
Cargill Inc. is scouting for deals to access the US$400 billion global seafood market, Bloomberg reported.
Cargill, which already produces fish feed, now wants to produce and process seafood products, chief executive officer Dave MacLennan told Bloomberg. In 2015, Cargill acquired Norwegian salmon-feed maker EWOS AS for US$1.5 billion.
"We have an active game board of opportunities that are at various stages of conversation," he said. "We want to further integrate in the seafood supply chain and we don't own anything yet, but we are scouting for opportunities."
Cargill did not provide details on how near it is to a potential deal.
The company has 38 aquaculture feed facilities in 20 countries mainly supplying feed to the salmon industry in Norway, Chile, Scotland and North America, as well as tilapia and shrimp producers in countries like China, Thailand and Vietnam.
While plant-based alternatives is a hot topic in the industry, the world hasn't yet reached peak meat, according to Cargill.
"I think people are going to continue to consume animal protein," he added. "We believe they're going to consume more fish over time. We're making investments in fish feed and in fish processing. That is a key part of our future strategy."
"Fish and seafood, bio-industrials, health and food technologies are three of the 'what's hot' areas for us," he said. "Asia is a passion. Obviously, it's not a product per se, but it's a region where we'd like to be more represented."