Cargill has entered into an agreement to sell its Toronto-area egg processing facility to Global Egg Corporation through a deal that is expected to close in the fourth quarter of this year.
The Etobicoke district facility, which Cargill purchased from a joint venture partner in 2006, produces processed and cooked eggs for the Canadian market.
Cargill spokesman Mike Martin told Agri Investor that the decision to sell was the result of a change in the needs of a local customer in that market.
In a statement, Cargill noted that its US egg business remained an integral part of the company’s protein growth strategy and that a majority of the Etobicoke facility’s 53 employees will be offered positions with Global Egg.
Demand for eggs, among the more affordable forms of protein, remains strong, Martin added. He was unable to disclose the sale price.
Earlier this year, Cargill invested $27 million to expand its egg processing capabilities in Michigan and the company maintains additional egg processing facilities in Minnesota and Iowa.
Other recent transactions include the construction of a $50 million beef distribution center in Kansas, the purchase of a beef processing facility in South Carolina and $111 million in improvements to a facility in Nebraska serving cooked meat customers.
Earlier this month, Cargill highlighted beef demand as an important factor in improved earnings last quarter.
Global Egg was founded in 1996 and produces liquid and frozen pasteurised egg products for the commercial, industrial and food service markets in Canada.
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