Family-owned Perdue Farms, one of the major U.S. poultry processors, is buying Niman Ranch, a producer of antibiotic-free meat and cage-free eggs, said Meating Place. “LNK Partners, a private equity firm, is selling Natural Food Holdings to Perdue for an undisclosed amount.” Besides Niman Ranch, a network of 700 family farmers and ranchers, the transaction includes the Prairie Grove brand and SiouxPreme packing plants in Sioux City and Sioux Center, Iowa.
“This represents the next chapter in our growth through premium proteins and trusted brands,” said Perdue Farms chairman Jim Perdue in a statement. “The Niman Ranch brand continues our commitment to raising animals without antibiotics or artificial growth stimulants, and to responsible food and agriculture.”
Reuters says, “The deal marks the latest move by a big food company seeking to expand its presence in the fast-growing U.S. natural foods market. It risks displeasing some consumers, who are attracted to Niman Ranch’s reputation for working with independent farmers and raising animals without antibiotics.” Perdue purchased Coleman Natural Foods in 2011.
“Perdue’s Niman buy comes just months after pork giant Hormel, known mostly for down-market Spam, dropped $775 million to gobble up Applegate, Niman’s antibiotic-free/organic competitor,” wrote Tom Philpott at Mother Jones. U.S. meat consumption rates fell by 10 percent in the past decade, said Philpott, so Perdue was following a strategy to generate growth in a stagnant market, “buying into a rare segment that’s growing rapidly.”