Cargill is announcing the sale of its beef cattle feed yards at Bovina and Dalhart, Texas, to Amarillo-based Friona Industries, L.P. Terms of the pending sale are not being disclosed. Finalization of the transaction will take place upon the completion of definitive agreements and any required regulatory reviews. Cargill will retain its cattle feed yards at Yuma, Colo., and Leoti, Kan.
“Selling our feed yards in the Texas panhandle allows us to redeploy many tens of millions of dollars annually into investments that will help us grow our protein business – money that otherwise would have been tied up as working capital used to purchase and feed cattle,” said John Keating, president of Cargill’s Wichita-based beef business. “This decision makes sense particularly because we have a terrific and longstanding business relationship with Friona Industries, which already supplies Cargill with excellent cattle from their four feed yards. The Texas feed yards we are selling will continue to supply cattle to our beef processing plants while also enhancing Friona Industries’ feed yard portfolio.”