Green Plains’ subsidiary, Green Plains Cattle Company, will purchase two cattle-feeding operations from Cargill for $36.7mn, making it the fourth largest cattle-feeding operation in the United States.
The company is already the second largest consolidated owner of ethanol production facilities in the world, producing nearly 1.5bn gallons of ethanol at full capacity. The American corporation acquired three ethanol plants last summer in order to increase its total ethanol output.
This strategic investment saw Green Plains expand “internal demand” for its ethanol production by-products DDGS and corn oil, as well as diversifying its income streams. CEO Todd Becker stated that the cattle business will be responsible for annually consuming more than 300,000t of dried distillers grains (DDGS) and 40mn pounds of corn oil. This would amount to 9.8% and 17.7% of Green Plains’ total DDGS and corn oil production in 2016 respectively.
Green Plains Cattle Company currently owns a 70,000 head cattle-feeding operation near Kismet, Kansas and a 30,000 head operation near Hereford, Texas. Now, the newly acquired feed yards located in Leoti, Kansas, and Yuma, Colorado will hike the company’s total capacity at more than 255,000 head.