Cargill CEO says plant-based will 'cannibalize' protein business

Cargill CEO Dave MacLennan has said that his company is finding its way through a major shake-up in its business over the next couple of years, as consumer demand for the brand new generation of plant-based protein products eats into the market share for meat from slaughtered animals.

“Our analysis is that in […] 3 to 4 years, plant-based will be perhaps 10% of the marketplace,” he said at a conference held by the US National Grain & Feed Association. “We’re a sizable beef producer and that is a major part of our portfolio. So there’s some cannibalization that will occur,” Reuters reported him as saying.

The Cargill CEO also said that Cargill doesn’t expect China’s domestic livestock feed industry to be self-sufficient any time in the future. MacLennan’s comments came amid growing calls from Chinese authorities to crank up internal production, even as the Asian country imported a record amount of grain for feed purposes last year.

WHY IT MATTERS
Cargill has been trying to improve its footprint in the plant-based protein space lately, anticipating the buyer shift from animal protein. The US agribusiness giant is an integral supplier of pea protein to plant-based patty maker Beyond Meat through a joint venture with Puris Foods, and recently earmarked $475 million to expand its US soybean crushing capability.

Cargill in addition has launched its own selection of plant-based meat alternatives in China. Its PlantEver retail brand is available to consumers carrying out a trial period with enterprise customers including junk food chain KFC in the united states last year.