Cargill buys two beef and pork plants to meet demand for pre-packaged cuts

Cargill employees are increasingly serving as the butchers and meat cutters for thousands of grocery stores.

The Minnetonka-based agribusiness recently bought two pork and beef processing plants in a move to expand “case-ready” options for retailers. Those options include simple cuts or pre-seasoned chops that can be delivered directly to the meat display case.

“By bringing more of our case-ready and value-added protein products to retailers, their employees can spend less time on backroom prep work and more time helping their customers at the meat counter,” Hans Kabat, president of Cargill’s North American Protein business, said in a statement.

Cargill bought the plants in Pennsylvania and Rhode Island from Ahold Delhaize. Purchase terms were not disclosed.

Ahold Delhaize, which has its headquarters in the Netherlands, owns the largest group of grocery stores on the East Coast — 2,000 locations in 20 states under brands, including Giant and Stop & Shop.

“By aligning these facilities with a company that specializes in meat production, we can continue to provide quality products to our brands’ customers,” JJ Fleeman, CEO of Ahold Delhaize USA, said in a statement.

Cargill has already been managing operations at the Pennsylvania plant under a 2020 partnership and at the Rhode Island facility since its construction began in 2018. About 1,000 Cargill employees staff the plants.

Cargill, one of the country’s four largest beef packers, expects production capacity to grow 15% and to expand case-ready offerings beyond the Ahold retailers.

Demand for case-ready meat is growing rapidly because of retailers’ “skilled labor shortages, their need for additional store shelf solutions and the focus on safety within their stores,” Cargill told the Star Tribune. The company said its research found most shoppers believe it’s “as good or better as meat that is cut and packaged in-store.”

Nearly 75% of shoppers “sometimes or frequently purchase pre-cut, pre-marinated or pre-seasoned meat,” according to an industry trade group survey last year. That’s up from 60% in 2020.

Consumers are also gravitating more toward smaller cuts to combat inflation. After notably rising in recent years, meat prices are expected to moderate in 2024.