WICHITA, Kan., April 26, 2017 /PRNewswire/ -- Cargill has reached an agreement to sell its beef cattle feed yards at Leoti, Kan., and Yuma, Colo., to Omaha-based Green Plains Inc., a vertically integrated ethanol producer with existing feed yards at Kismet, Kan., and Hereford, Texas. The transaction will be finalized once a definitive agreement and regulatory review are complete.
Green Plains will supply cattle to Cargill through a new multiyear agreement. The approximately 90 people currently employed at Cargill's Colorado and Kansas feed yards will be offered positions with Green Plains. The feed yards being sold have a capacity of approximately 155,000 cattle at any point in time.
"Selling our two remaining feed yards aligns with our protein growth focus by allowing us to redeploy working capital away from cattle feeding operations to other investments," said John Keating, president of Cargill's Wichita-based protein business operations and supply chain. "By partnering with Green Plains in a multiyear supply agreement, the Yuma and Leoti yards will continue to supply cattle to our beef processing facilities at Fort Morgan, Colo., and Dodge City, Kan., ensuring consistent, high-quality beef products for our customers."
Over the past two years, Cargill has announced approximately $560 million in acquisitions and capital investments to grow its North American protein business.
"We are committed to being the leading protein provider that nourishes people, animals and the planet in a safe, responsible and sustainable way while exceeding the expectations of our customers," added Keating. "We have great positive growth momentum and are confident it will continue to accelerate as we continue to help our customers' and suppliers' businesses, communities and colleagues thrive."
Cargill provides food, agriculture, financial and industrial products and services to the world. Together with farmers, customers, governments and communities, we help people thrive by applying our insights and 150 years of experience. We have 150,000 employees in 70 countries who are committed to feeding the world in a responsible way, reducing environmental impact and improving the communities where we live and work. For more information, visit Cargill.com and our News Center.