Cargill intends to sell its poultry business in China to private equity firm DCP Capital, according to reports.
Reuters reported that the sale is subject to regulatory approvals, but the transaction is expected to be finalized later this year.
Cargill has not yet responded to a request from WATT Global Media for information concerning the planned divestiture, and DCP Capital has not commented on the situation.
Cargill in 2013 inaugurated its integrated poultry operation in Lai'an, Anhui, China, which included every stage of the supply chain: breeding, raising, feed production, hatching, slaughtering and processing. The company began the planning stages for its China poultry operations in 2009 as part of its effort to support the modernization of agriculture and food safety in China.
The company also opened a new US$48 million poultry complex in Chuzhou, Anhui, in 2019. That operation included breeding, raising, feed production, hatching and primary and further processing capabilities.
Cargill ranks as the tenth largest broiler producer in the world, having slaughtered 625 million broilers during the past year, including 49 million through its China operations, according to the WATT Poultry International Top Poultry Companies Survey.
Other Cargill poultry operations
Other Cargill poultry businesses are included in that Top Poultry Companies survey are the regional units Cargill Proteína Latinoamérica, Cargill Meats Europe and Cargill Meats Asia.
Cargill Proteína Latinoamérica has operations in Honduras, Colombia, Nicaragua, Guatemala and Costa Rica and slaughtered 252 million broilers during the past year..
Cargill Meats Asia is headquartered in Thailand and slaughters 180 million broilers annually. The China operations are not included in that figure.
Cargill Meats Europe is headquartered in the U.K. and slaughtered 144 million broilers during the past year. Cargill and Faccedna Foods, through a joint venture, also own Avara Foods, the U.K.’s third largest poultry company, which slaughtered 234 million broilers during the past year.
In North America, Cargill Protein is the third largest turkey producer in the United States. Cargill and Continental Grain Company, through a joint venture, own Wayne-Sanderson Farms, the third largest broiler producer in the United States.