Global agribusiness major Cargill has initiated the sale of its 35,000-ton aquafeed manufacturing facility in Franklinton, Louisiana, signalling a strategic portfolio shift within its animal nutrition business. The plant is being acquired by Bowers-Saha Nutrition, a long-standing Cargill customer, for an undisclosed sum. The transaction reflects a growing trend among specialised aquaculture firms to pursue deeper vertical integration across feed, farming and processing operations.
Strategic Rationale Behind the Transaction
According to Mark Kubecka, Business Manager at Bowers-Saha’s marketing and sales arm Homegrown Seafood, Cargill approached the company directly, citing aligned values and long-term business philosophy. Bowers-Saha, headquartered in Palacios, Texas, is a third-generation aquaculture enterprise engaged in farming shrimp, red drum, striped bass and catfish, with plans to expand into tilapia. The acquisition brings feed manufacturing directly into its operational ecosystem, reducing reliance on external suppliers.
Strengthening Supply Chain Control
The acquisition moves Bowers-Saha closer to full supply-chain integration. While the company has already achieved end-to-end control for certain species, in others, the feed component remains a critical gap. By owning the Louisiana plant, Bowers-Saha gains greater control over feed formulation, availability and cost stability factors that are increasingly important as input prices and biosecurity risks rise across aquaculture and animal protein systems.
Continued Collaboration with Cargill
Despite the change in ownership, the plant will continue using Cargill’s nutrition systems, rations, premixes and vitamin formulations. A consulting agreement has been established to ensure operational continuity and technical support during the transition. Importantly, the existing workforce will be retained, supporting continuity and operational stability, an increasingly valued factor in feed manufacturing transitions.
Context of Long-Term Expansion
The acquisition follows a major expansion phase for Bowers-Saha five years ago, when it acquired Ekstrom Aquaculture in El Campo, Texas, integrated processing capabilities and expanded bass farming capacity. The creation of Homegrown Seafood further consolidated its downstream market presence. From an industry perspective, the deal underscores a broader shift in aquaculture and animal nutrition sectors, where control over feed inputs is becoming a strategic asset, mirroring trends long observed in dairy and poultry integration models.
