Cargill ‘committed’ to meat growth
Cargill announced its intention to complete the takeover of Five Star Custom Foods (likely to be completed in the summer) on Wednesday 1 June. The family-owned business produces a range of cooked meat, soups and sauces for the restaurant and foodservice industry and it was these capabilities that attracted Cargill to make a move for the business.
It was the company’s second big announcement in a week, after it confirmed plans to pump $5.9m (£4.08m) into a partnership with Philippine poultry producer JFC, leading to 1,000 new jobs.
With other big meat companies, notably BRF, charging forward with an ambitious global expansion plan, does Cargill feel the needs to flex its muscles in the global meat market?
‘Change and adapt’
Cargill’s director of communication, Mike Martin, did not comment on this, but stressed that strengthening the company’s meat offering remained vital in the modern market.
“We are committed to the growth of our protein business,” Martin told GlobalMeatNews. “That includes enhancing capabilities we already have, as well as adding capabilities we do not. In some cases, such as our recent beef plant acquisition in Columbia, South Carolina, we strengthened our geographic footprint in a region where we see considerable growth potential for our protein business. The business environment and marketplace we operate in is constantly evolving, so we must change and adapt to meet our customers’ needs and grow.”
On the takeover of Five Star Custom Foods and what it would bring to business, Martin said: “Acquiring Five Star Custom Foods complements Cargill’s existing protein business and adds cooked meats, custom soups and sauces capabilities we currently do not have. It also allows us to better optimise our supply chain, and to learn from Five Star’s product innovation team.”
He added that the acquisition would enhance Cargill’s ability to work on product innovation that added value to food processing companies. “It’s about the intersection of creativity, technology, science, knowledge and experience,” he said.
