Dive Brief:
- Cargill has announced its acquisition of the FPL Food, LLC ground beef processing plant in Columbia, SC. The companies did not disclose the terms of the deal, which is expected to close near the end of March.
- The 100,000-square-foot plant adds to Cargill's existing portfolio of meat processing facilities in Georgia and Pennsylvania and enables the company to better serve eastern retail and foodservice customers.
- With this acquisition, Cargill continues to build its proteins business while finding synergies to make the company's beef segment more profitable.
Dive Insight:
Per capita beef consumption has been on the decline, and the USDA predicts that decline will continue until 2017 before making a turnaround. The agency estimates that beef production will increase beginning in 2018, which will contribute to a rise in beef consumption.
Cargill is banking on that turnaround as it expands its beef business. In addition to this acquisition, Cargill opened a distribution center at its Dodge City, KS, beef processing facility earlier this year. At the same time, Cargill has moved to narrow its focus on beef and poultry after selling its pork assets to JBS last year.
Last year, the WHO also announced that red meat was a "probable" carcinogen. The link between red meat and health problems, such as heart disease, has long been discussed. Cargill and the rest of the red meat industry avoided further backlash when the 2015 Dietary Guidelines did not include a warning against the consumption of red meat, as rumors had suggested.
Red meat consumption has for the most part steadily declined since reaching its peak in the mid-1970s. Chicken consumption has doubled in that same time period. Still, meat companies are beefing up this segment as consumers seek more protein in their diets.