Cargill's Wichita-based pork business announced it has completed a transaction to acquire a 21,500-acre hog production site near Dalhart, Texas, from the Premium Standard Farms LLC subsidiary of Smithfield Foods, Inc. (NYSE: SFD) for approximately $33 million.
The facilities, which have been idle since spring 2010, will be used to produce pigs that will be transferred to Midwest grow-out facilities after they are weaned. These pigs will then become a portion of the animals Cargill Pork harvests annually at its two meat processing facilities in Beardstown, Ill., and Ottumwa, Iowa.
In addition to sow inventory that will be introduced to the property, Cargill Pork plans to make additional investments to improve and expand existing assets on the property, as well as add infrastructure as required. The first group of animals from the site is expected to be harvested in 2012, with the number increasing annually for several years. The site will employ approximately 272 people.