Under the agreement, Cargill purchased the assets of Southern States Cooperative’s animal feed business, including seven feed mills and its portfolio of products, brands and customer and supplier relationships. The other segments of Southern States Cooperative’s business – retail, farm supply, energy, and agronomy – are not part of the transaction.
“The combination of CFN U.S. and Southern States Cooperative’s animal feed business will help us grow with customers and best meet their ever-changing needs,” said Mark Lueking, U.S. managing director, Cargill Feed and Nutrition. “We are excited about this growth opportunity to further demonstrate our commitment to the U.S. animal feed industry.”
The acquisition strengthens Cargill’s distribution and go-to-market capabilities in the Southeast, Mid-Atlantic and Northeast regions of the United States, and provides a pathway for continued growth across the region. In addition to the acquisition, Cargill has completed a long-term supply agreement with Southern States for Cargill to supply its retail stores with Southern States branded feed.
“We believe that our combined business will provide unique benefits to our members and customers,” said Jeff Stroburg, president and CEO of Southern States Cooperative, Inc. “We’ve brought together two best-in-class feed companies to develop solutions to meet their needs. We look forward to growing the Southern States feed business with Cargill as our partner.”
Southern States, established in 1923, has more than 200,000 farmer-members. The cooperative provides a range of farm inputs, including fertilizer, seed, livestock feed, pet food, animal health supplies and petroleum products, as well as other items for the farm and home. It serves its members and non-member customers through 1,200 retail outlets in 23 states.
Previously, Land O’Lakes had entered into an agreement to purchase Southern States Cooperative feed business but the company opted to build its own feed facility instead to allow it to move more quickly in the market.
In September 2016, Southern States and Perdue AgriBusiness closed a transaction that will ensure the continued operation of over a dozen Mid-Atlantic grain elevators. Perdue AgriBusiness will purchase 10 of the 12 elevators that the company has leased from Southern States, Richmond, Virginia, U.S.-based farm supply and service cooperative, since 2002 and will continue to lease two other elevators that are immediately adjacent to Southern States feed mills.