Cargill confirmed Thursday it has entered an agreement to sell off a California processing plant to the state's largest beef producer.
Central Valley Meat Holding Company will acquire the food giant's processing facility in Fresno for an undisclosed amount, according to an emailed statement to Agriculture Dive. The California beef producer aims to retain as many of the plant's 880 employees as possible.
"With this sale, Cargill’s priorities were to place as many of our workers as possible into jobs and to retain the beef processing capacity for California producers," a Cargill spokesperson said.
Central Valley Meat solidified itself as a dominant player in the California beef industry following the 2019 acquisition of Harris Farms, which operates the state's largest feedlot located about an hour's drive from Fresno. The producer employs more than 2,000 workers.
The acquisition of the Cargill plant represents a "significant expansion" in capacity, according to Central Valley Meat. The purchase will allow the California producer to better respond to market demands and drive efficiencies across its supply chain.
"We're excited to work alongside cattle producers in the state and region to continue delivering quality beef products for our customers and consumers," Central Valley Meat CEO and owner Brian Coelho said in a statement.
Cargill employees will have the opportunity to "explore roles" within Central Valley Meat, the California processor said in a statement. Cargill has yet to file the required notice with the state that would indicate mass layoffs.
The sale comes less than a month after Cargill offloaded eight grain facilities in the Midwest to rival CHS. Global food giants' profits have suffered as lower commodity prices eat away at earnings.
