Cargill Acquires Meat Processing Facilities from Ahold Delhaize

In a strategic move to bolster its presence in the meat processing sector, US agri-food giant Cargill has acquired two meat processing facilities from retail powerhouse Ahold Delhaize. The transaction, which took place on February 7, 2024, sees Cargill expanding its production and distribution capabilities in the northeastern United States, though the financial terms of the deal remain undisclosed.

Expanding Distribution in the Northeast

The acquired facilities, located in North Kingstown, Rhode Island, and Camp Hill, Pennsylvania, are set to enhance Cargill’s distribution of supermarket case-ready beef and pork. This acquisition is part of Cargill’s strategy to widen its reach and supply to retailers beyond Ahold Delhaize stores in the region. Infinity Meat Solutions, a subsidiary of Ahold Delhaize USA, has had Cargill staff operating in both plants, reflecting a longstanding partnership between the two entities.

Strengthening Partnerships and Distribution Networks

Cargill has announced its intention to continue supplying own-label products to Ahold Delhaize stores in the northeast while also aiming to extend its case-ready meat products to new retail customers. This move is expected to leverage the existing infrastructure and workforce at the two facilities to meet the growing demand for high-quality meat products. Hans Kabat, president of Cargill’s North American protein business, expressed enthusiasm for the investment, emphasizing the anticipated benefits of continuing the partnership with Ahold Delhaize USA and reaching additional retail markets.

Industry Implications

This acquisition signifies Cargill’s commitment to expanding its footprint in the meat processing industry and its ability to adapt to changing market demands. By securing these two facilities, Cargill is poised to strengthen its supply chain efficiencies and enhance product offerings to retailers across the northeast, marking a significant step in its growth strategy within the agri-food sector.

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