Cargill expands US operations with acquisition of two feed mills
The move is designed to enhance Cargill’s production and distribution capabilities across the western and central US, catering to a broad customer base, including large-scale farmers, ranchers, and local retailers.
The acquisition was finalized on September 3, although financial terms were not disclosed.
Expansion of regional operations
The Denver mill brings 35 employees under Cargill's wing and boasts dedicated packing lines, which the company plans to leverage for growth in agricultural retail. Cargill sees this as a key opportunity to serve smaller-scale, hobbyist farmers and pet owners, while also expanding its capacity to meet the needs of larger farming and ranching operations in the region. The company plans to make further investments in the facility to enhance its capabilities.
The Kansas City mill is strategically located near Cargill’s existing facility in the area, bolstering the company’s position as a major supplier in the region. Cargill expects this proximity to enable continued growth with local customers.
Strategic rationale
Joe Comte, retail commercial director for Cargill Animal Nutrition and Health in North America, highlighted the motivations behind the acquisition: “We understand that ag retail customers in the western and central US are eager to meet the needs of a growing population of farmers, ranchers, and lifestyle consumers. This investment ensures that Cargill remains relevant and positioned to grow alongside them.”
Cargill's investment in the Denver mill will include over $35 million for structural improvements, automation upgrades, and new equipment for receiving, mixing, pelleting, packing, and conveyance. The addition of three dedicated packing lines for small packs (1lb-20lbs) will enable the company to expand its product offerings for entry-level hobby farmers, as well as broaden its equine and backyard poultry treat portfolio. These upgrades are designed to modernize the facility and transform it into a flagship retail feed mill, Comte told us.
Future plans
Cargill also has plans to develop the Kansas City facility further and is preparing to commission a new feed mill in Granger, Washington, in spring 2025. The Granger operation will primarily serve Cargill’s lifestyle business in the Pacific Northwest. This stand-alone facility will be capable of producing over 125,000 tons of feed annually, with products packaged and sold under both Cargill’s Nutrena brand and private labels.
Comte emphasized the broader strategic vision: “With facilities located across the US, we can bring supply chain solutions closer to the geographies we serve. By positioning feed production near our customers, we can localize the supply chain, reduce transit times, and make the supply chain more resilient and cost-effective.”
This acquisition and the related investments signal Cargill’s continued commitment to growth in the agricultural retail sector and its ability to meet the evolving needs of both small-scale and large-scale farming operations, he added.
