Monday, August 9, 2021

Another consolidation in U.S. poultry industry

Sanderson Farms Inc. confirmed today that it is selling to Cargill Inc. and Continental Grain Co. for $4.5 billion.

The deal combines Sanderson, the nation’s third-largest chicken producer, Continental Grain, which owns Wayne Farms, the sixth-largest in the U.S.chicken industry.

The combination will hold 15 per cent of U.S. production.

Tyson Foods has 20 per cent and Pilgrim’s Pride has 16 per cent.

Paul Fribourg, chairman and chief executive officer of Continental Grain,  said "we are very happy to partner with Cargill with whom we have had a decades-long relationship between two family-owned companies.”

What Cargill gains is feed sales.