Cargill Enters Into Agreement With Westfeeds

Cargill has reached a manufacturing agreement with Westfeeds to buy billings feed mill and property. Officials from both companies anticipate that the sale will close by mid-February 2010.

According to Westfeeds officials, the addition of the Billings feed mill facility will complement the company’s existing presence in Billings as well as regionally.

Cargill has acquired the facility from Farr Better Feeds in 1991. The plant, which was built in 1968, has six full-time employees and a production capacity of 50,000 tons. With this agreement, Cargill will continue to produce bagged feeds, pet food, and its proprietary ROC mineral product, among other offerings, throughout the region at other facilities, said the company.

Scott Black, president and chief executive officer of Westfeeds, said: “We are pleased by the opportunities that Cargill’s Billings feed operations present for our customers. This agreement further underscores our dedication to serving the animal nutrition needs of our customers as we strive towards our vision of being the premier provider of animal nutrition in the Northern Plains.”

Karl Thoene, general manager for Cargill Animal Nutrition’s Pacific Northwest region, said: “Under this arrangement, we are placing a valued feed manufacturing asset in the hands of a local organization that shares our commitment to this market and its livestock customers.

“Through bulk-feed toll manufacturing agreement with Westfeeds and by shifting our bagged feed manufacturing focus to other Cargill regional facilities, we streamline our operations and better utilize our regional capabilities to improve our customer offerings. This agreement combines Westfeeds’ manufacturing expertise with Cargill’s nutritional expertise, thereby bringing additional value to customers throughout Montana and northern Wyoming.”