Cargill to acquire major soybean processing plant in Brazil

Cargill has acquired full ownership of a soybean oil crushing, refining and bottling plant it has operated since 1998 under a lease agreement in Barreiras, Bahia, Brazil, expanding its operations in the world’s largest soybean producer and exporter.

The Barreiras facility employs 250 people and produces soybean meal (bulk and bagged), soybean hull pellets, degummed oil and refined oil (bulk and bottled) under the Liza brand. Financial terms of the deal were not disclosed.

“We are very pleased with the acquisition of the Barreiras facility,” said Paulo Sousa, president of Cargill’s Brazil and Latin America agricultural business. “This initiative is consistent with our growth strategy and strengthens our operations in the region, allowing us to continue investing in serving both our domestic and global soybean meal customers.”

According to Cargill, over the past five years, the company has invested R$8.1 billion (US$1.5 billion) in its operations in Brazil, which include 29 factories, 75 warehouses, seven port terminals, two innovative breeding centers, a service center, five distribution centers, 14 commercial offices and four corporate control centers.

In May, Cargill won the auction for a 35-year lease of the port terminal in Paranaguá with a winning bid of US$72.4 million.

In February, the company acquired the remaining 50% of SJC Bioenergia, consolidating 100% control of the company, now renamed Cargill Bioenergia, with units in Quirinopolis and Cachoeira-Dourada.

Earlier, it was reported that Cargill will lay off about 5% of its global workforce, or 8,000 employees, as a result of weak financial performance in fiscal 2024 and a business restructuring. Cargill’s fiscal 2024 sales were $160 billion, down nearly 10% from $177 billion a year earlier.

Tags: soybean, Cargill, Brazil