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Cargill expands its animal nutrition presence in Africa

Cargill’s animal nutrition business has announced an investment of approximately US $20 million in South Africa. Cargill has gained a majority shareholding and assumed managerial control of NuTec Southern Africa, its existing joint venture with Astral Foods, an integrated Southern African poultry producer.

As part of this investment, Cargill plans to build a new premix and base mix facility at NuTec’s existing location in Pietermaritzburg, which will expand Cargill’s animal nutrition capabilities in sub-Saharan Africa. 

Cargill now owns 75% of the shares in NuTec, a manufacturer of vitamin and mineral premix for the animal nutrition industry.  Astral Foods retains a 25 percent shareholding in the business and remains an important partner and customer to Cargill. NuTec will migrate its name and product portfolio to Cargill’s Provimi brand. 

“We are delighted to announce this investment, which will allow Cargill Animal Nutrition to better serve our customers in sub-Saharan Africa,” said Gudo klein Gebbink, general manager for Cargill’s Premix and Nutrition Sub-Saharan Africa business.  “We see great potential and opportunities to expand our business”. 

Gary Arnold, Astral’s business development director added: “The decision to sell a portion of Astral’s interest in this business was taken to allow Cargill’s animal nutrition business to invest in the redevelopment of the NuTec facility, and simultaneously expand premix sales into African markets.  As a result, Astral’s remaining 25% interest will be in a larger speciality premix business.”

This latest investment was welcomed by Johan Steyn, managing director of Cargill in South Africa:  “This investment reinforces Cargill’s commitment to support farmers and grow our businesses in sub-Saharan Africa.  South Africa is the perfect platform from which to increase our support of the agricultural sector in the region”.

World Poultry

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