Cargill has sold it's liquid feed plant in Auburndale to Quality Liquid Feeds Inc. of Dodgeville, Wisconsin for an undisclosed price.
All 3 full-time workers were retained while the new company took over the operation of the liquid feed plant, the company said in a press statement. The liquid feed plant becomes the company's first facility in Florida.
"We are pleased and excited to be establishing this presence in Florida," said Cory Berg, President and CEO, in the release. "This has been a goal for Quality Liquid Feeds for a long time, but we were waiting for the right opportunity to bring the quality, support and value we are known for to this area."
The liquid feed plant has the production capacity of up to 50,000 tons per year of a molasses-based liquid feeds which are primarily fed to beef and dairy cattle. The plant was originally built in 1972 by Cargill.
Roger Lawson, vice president of sales and marketing, told how Cargill had approached Quality Feeds last year about buying the liquid feed plant. Cargill officials signaled the Minneapolis-based conglomerate desired to concentrate on its dry animal feeds.
"The liquid feed plant really wasn't a strategic fit for our business," said Cargill spokesman Tim Loesch, agreeing that Cargill would concentrate on dry feeds.
The plant did conform to 35-year-old Quality Feeds' expansion plans, Larson said.
"We're on a significant growth spurt," he said. "We saw an opportunity in the Florida market."
The Florida cattle industry, more often than not cow-calf operations providing out-of-state feed lots and beef producers, has experienced good times since last year. Increasing demand from developing countries for U.S. beef exports together with with stable domestic demand and smaller herds in western states and other beef-producing countries have resulted in sending the cost for cattle to record highs.
Polk and Florida cattle ranchers anticipate those circumstances to preserve for a lot more years.
"You can expect to see QLF step in as a strong supporter of Florida's beef and dairy industries," said Randy Davis, sales manager for the southern U.S.