U.S. agrifood giant Cargill is set to step out of the Canadian egg processing business and sell its Toronto-area plant to another processor in the same line of work.
The company announced Thursday it plans to sell its egg processing plant at Etobicoke to Global Egg Corp., which also operates out of Etobicoke, for an undisclosed sum. The deal is expected to close later this fall.
“Given a recent shift in demand for cooked egg products like those produced at Etobicoke, which resulted from changing customer requirements, we feel the facility is a better fit with a firm such as Global Egg Corp.,” Chris Roberts, president of Cargill’s North America egg business, said in a release.
A “majority” of the Cargill plant’s 53 employees are expected to be offered jobs with Global Egg, Cargill said, while the remainder will get severance and “other support” from Cargill.
Cargill, which had owned the Etobicoke plant since 2006, emphasized in its release that its U.S. egg processing plants — two in Minnesota and one each in Iowa and Michigan — are not affected by the sale.
The U.S. egg business, which operates under the name Cargill Kitchen Solutions, “remains an integral part of Cargill’s protein growth strategy,” the company said.
“Global protein demand continues to increase in concert with population growth and the movement of more people into the middle class around the world,” Roberts said.
“As household income improves, people typically consume more complex proteins in the form of meat, dairy, egg and fish products. We believe we are in the sweet spot to provide more people with nutritious, wholesome, sustainable, abundant and affordable protein now, and in the future.”
Global Egg, which set up in 1996 through a merger of two other processors, already makes liquid and frozen pasteurized egg products, including hard-cooked eggs, for industrial, commercial and foodservice clients.
Cargill has previously worked with Global Egg through the latter company’s EggSolutions business, which along with liquid and hard-cooked products also makes scrambled egg mixes, pre-cooked scrambled eggs, diced eggs, omelets, frittatas and egg patties, among other wares for the manufacturing and foodservice sectors.
The move marks another retreat from Etobicoke for Cargill, whose Cargill Meat Solutions business operated a beef further-processing plant there from 1992 to 2011. — AGCanada.com Network