Cargill buys US meat processing plants amid rising case-ready beef and pork demand

09 Feb 2024 --- Cargill is strengthening its presence in the Northeastern US market by investing in two new meat processing facilities. This investment will expand its production and distribution of supermarket case-ready beef and pork to retailers in response to the increasing consumer demand for convenient and affordable protein options.

The company has purchased case-ready meat plants in the US — namely North Kingstown, Rhode Island and Camp Hill, Pennsylvania — from Infinity Meat Solutions. 

These facilities, which were previously operated as subsidiaries by Ahold Delhaize USA, are already staffed by Cargill team members to produce packaged ground beef and pork, muscle cuts and value-added products such as seasoned, marinated and breaded meats for the retailer’s US grocery store brands. 

“With this investment, we look forward to our continued partnership with Ahold Delhaize USA companies while bringing additional high-quality case-ready products to new retail customers,” says Hans Kabat, president of Cargill’s North American Protein business. 

“By bringing more of our case-ready and value-added protein products to retailers, their employees can spend less time on back-room prep work and more time helping their customers at the meat counter.”

Market trends
While the terms of the sale have not been disclosed, this investment reflects Cargill’s shift in focus toward convenient meal solutions, reflecting market trends. The company’s expanded production and distribution network will deliver fresh meat products to households across the region.

The US remains a key target market for meat products. According to a recent report from YouGov, hamburgers and cheeseburgers are among the top dishes consumers are drawn to in the US, while the baby boomers show a particular fondness for BBQ ribs and roast beef.

“Made in America”
In response to the recent scrutiny of the country’s “monopolized” meat industry, the US government, under the Biden administration, has undertaken efforts to implement stricter “Made in America” labeling regulations, with the aim of improving product transparency and fostering localized production.

Following the government’s call, Walmart also announced plans last year to open its case-ready meat facility as part of plans to establish a complete Angus beef supply chain. Having initially announced this in 2019, Walmart has since taken steps to offer customers greater access to meat options.

By Sichong Wang