Cargill expanding animal nutrition in sub-Saharan Africa

by World Grain Staff
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PIETERMARITZBURG, SOUTH AFRICA — Cargill's animal nutrition business announced on Dec. 14 an investment of approximately $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% 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. The rapidly growing markets and increasing animal productivity in this strategic area are an excellent fit for Cargill's animal nutrition business's market approach. Supported by our worldwide research and development capabilities, the combination of high quality nutritional products and world-class technical support will enable our customers to further optimize their results and effectively produce safe food." 
Gary Arnold, Astral's business development director said, "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 specialty premix business."
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