JBS has revealed the sale of a feedlot and surrounding farmland near Brooks, Alberta, to MCF Holdings Ltd. (MCF) for roughly $40 million ($50 million CAD).
The Lakeside Feeders backyard has a capability of 75,000 head and JBS took ownership of the feedlot in 2013, forming JBS Food Canada.
JBS Food Canada will continue to own and run their packaging plant in Brooks, Alberta. As part of the contract MCF will continue to provide livestocks to the packer. The deal is still pending a regulative evaluation and approval.
This is the very first sale of the JBS Five Rivers Cattle Feeding LLC since the statement was made last month that the livestocks feeding business would be divested by JBS. The sale is part a $1.8 billion divestment strategy by JBS following a bribery scandal that has actually rocked the Brazilian owned business.
5 Rivers has 12 feedlots in the United States with places in Arizona, Idaho, Kansas, Texas, Oklahoma and Colorado. Consisting of the backyard in Canada, JBS had a one-time capability of one million head in North America, making it the biggest livestocks feeder in the area.
MCF is a subsidiary of Nilsson Bros. Inc., a livestock-based farming business in Alberta and owns varied farming operations throughout the western Canadian provinces. Nilsson Bros. business consists of auction markets, animals insurance and finance, and feedlots. There are extra ranchers and animals operations in British Columbia, Alberta, Saskatchewan and Manitoba.
MCF strategies to use work to the existing staff members of the farm and feedlot, pending approval.