Cargill, Active Feed Announce Feed Manufacturing and Service Agreement

Cargill recently announced that it will cease operations at its Arkona facility in June 2009 due to border crossing issues that created ongoing barriers to effectively serving eastern Michigan feed customers.

25/03/09 Cargill has entered into a feed manufacturing agreement with Active Feed of Pigeon, Mich. to serve customers in the “Thumb region” of Michigan. According to officials from both companies, the agreement is expected to go into effect within the next 45 days and give both parties distinctive advantages that will help better serve livestock customers in the eastern Michigan marketplace.

Under the agreement, Cargill will continue providing quality feed products to customers in a region currently served by Cargill’s Arkona, Ontario feed production facility. However, Cargill recently announced that it will cease operations at its Arkona facility in June 2009 due to border crossing issues that created ongoing barriers to effectively serving eastern Michigan feed customers. “Through our new alliance with Active Feed, Cargill's existing livestock customer base in Michigan will continue to receive the high levels of support and service they have traditionally enjoyed,” said Pete Wamsteeker, regional general manager for Cargill Animal Nutrition, “and benefit from the combined expertise of Cargill and Active Feed’s animal nutrition capabilities.”

Under the agreement, Pigeon, Mich.-based Active Feed will manufacture feed and provide feed delivery services for Cargill Animal Nutrition customers, while maintaining its own business in the same region. Active Feed will also enlist Cargill expertise to consult on good manufacturing and best management practices to improve processes for customers, having retained the services of a Cargill operations consultant to assist in implementing best practices. Active and Cargill officials state that this approach will give both companies’ customers access to quality products that are produced locally.

“This agreement should provide both parties with the structure and support to continue to serve animal agriculture throughout eastern Michigan, now and for several years to come,” said Joseph Maust, CEO of Active Feed.

Based in Pigeon, Mich., Active Feed was founded in 1960 and has 54 employees. Active Feed is a provider of prepared animal feeds, through its Farm Crest Foods affiliate, egg production and marketing, and through its Huron Gas operation, propane sales and marketing.