Driven by a historical shift in food production with farmed fish surpassing global beef production for the first time in modern history, Cargill today announced it has formed a joint venture with Naturisa to build a USD$30 million shrimp feed facility near Guayaquil. The transaction involves the construction of a new world-class shrimp feed mill that will produce 130,000 metric tons annually and employ 260 people when the facility is fully operational in 2017.
Cargill will own 75 percent and have managerial control of the day-to-day operation, while Naturisa will retain 25 percent in the joint venture. The investment creates a unique opportunity for Cargill to grow in aquaculture in Ecuador and opens the door to future investment opportunities for other commodities in the market. Through its Americas Marketing Group, Cargill has imported agricultural commodities into Ecuador for a number of years. Naturisa, Ecuador's second largest shrimp producer and the fourth largest exporter in the country, is a leader in the aquaculture industry.
"This joint venture with Naturisa positions us to become one of the largest producers of shrimp feed in Latin America," said Sarena Lin, president of Cargill's animal feed and nutrition business. "It creates new opportunities for both organisations' customers and stakeholders. Combining Cargill's vast resources and global reach with Naturisa's expertise will allow the new organisation to provide the best solutions to our customers and ultimately support the growth of Ecuador."
The transaction is aligned with Cargill's animal nutrition business' growth strategy. The new state-of-the-art facility will combine the latest feed safety technology and product quality capabilities. The Guayaquil facility positions Cargill to achieve its growth plans through increased production capacity and flexibility in product manufacturing, formulation, packaging and logistics for competitive offerings in both Ecuador and Peru. The facility will produce shrimp feed for animal producers marketed under the Purina® brand throughout the Latin American region.
"Naturisa and Cargill share a commitment to high-quality products and services, sustainable, responsible business practices, and both organisations have strong visions for future growth and aspire to be leaders in the aquaculture industry, which makes this partnership an ideal fit," added Ricardo Sola, general manager of Naturisa.