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Why Cargill Acquired Delacon: Expanding Plant-Based Phytogenic Feed Additives

Cargill’s 2022 acquisition of Delacon added specialist phytogenic feed-additive capabilities to its animal-nutrition portfolio. The companies framed the deal around animal health, feed efficiency, and performance.
From TheFinanceBase Team3 min to read
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Cargill’s 2022 acquisition of Delacon expanded its animal-nutrition business with specialist expertise in plant-based phytogenic feed additives. Cargill said the goal was to combine its global network and nutrition technology with Delacon’s phytogenic knowledge to broaden customer solutions for animal health, feed efficiency, and performance—not to pursue consumer retail demand alone.

What happened in the Cargill–Delacon deal?

On June 23, 2022, Cargill announced that it had signed a binding agreement to acquire Delacon. The announcement said the deal was expected to close in mid-2022, subject to customary closing conditions, but did not disclose its financial terms. Cargill later identified Delacon as acquired in 2022; the reviewed company announcements do not give an exact legal closing date or transaction value. Cargill’s 2022 announcement and its 2025 facility announcement establish those respective details.

The acquisition followed a five-year relationship: Delacon’s company timeline records a strategic global partnership announced in 2017, and Cargill later described the acquisition as a progression of that partnership. Delacon’s company history

Why did Cargill say it made the investment?

Cargill’s stated purpose was to join its global animal-nutrition network and technology expertise with Delacon’s market experience and knowledge of phytogenic additives. The company said the combination would help make phytogenics more widely available and support customer solutions focused on animal health, feed efficiency, and performance. It also pointed to expanded research, innovation, sustainability, and collaboration in digestive and immune health. These are Cargill’s strategic aims, not proof that the acquisition has delivered any particular outcome.

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In a 2023 interview, Cargill Global Additives Business Director Gilles Houdart described the strategic fit as bringing Delacon’s phytogenic ingredient library, databases, and innovation capability together with Cargill’s resources and expertise in pre-, pro-, and postbiotics. He said: “We’re excited to expand our animal nutrition offerings with science-proven additives.” May 2023 interview with Cargill’s Global Additives Business Director

At the time of the agreement, Cargill animal nutrition president Adriano Marcon described the companies’ intended direction: “After a successful five-year partnership, Cargill and Delacon will build upon their combined deep history and long-term commitment to scientifically driven, sustainable customer solutions focused on animal health, feed efficiency, and performance.” Cargill’s 2022 announcement

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What are phytogenic feed additives?

Cargill defines phytogenics as standardized, specific, science-based combinations of bioactive compounds found in plants. They are a category rather than one ingredient: examples can include herbs, other plants, and extracts such as essential oils. Delacon’s specialist focus was this category of feed additives.

Cargill said phytogenics may support nutrient digestibility, animal performance, and resilience, and may contribute to mitigating greenhouse gas emissions from livestock. Those are potential effects described by the company, not universal guarantees; suitability and results depend on the specific product, animal, and conditions of use. Cargill’s acquisition announcement

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How does Delacon fit into Cargill’s business today?

Cargill’s current materials place Delacon’s capabilities in its animal-nutrition portfolio, including Micronutrition & Health Solutions. The portfolio combines capabilities from Diamond V, Delacon, and Provimi. Examples of named products include Biostrong products for poultry and Syrena Boost, described by Cargill as a blend of phytogenics and plant-based additives for aquaculture. Its poultry materials also name Biostrong 510, Biostrong Protect, and Biostrong Forte. Cargill’s poultry feed-additives page

Product availability, approvals, end use, and permitted usage levels can vary by geography. Cargill directs customers to local representatives for location-specific information; the product names alone do not establish that an additive is approved or suitable for every operation. Cargill’s feed-additives page

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What do the reported facility and workforce figures mean?

The figures refer to distinct measures and dates, so they should not be treated as interchangeable indicators of current production.

Figure What it describes Source and date
Nearly 150 people across more than 25 countries Employees added to Cargill’s health technologies business in connection with the acquisition. Cargill, 2022 acquisition announcement
Up to 20,000 tons Phytogenics producible at the Delacon Hub facility, as described in a company-history milestone about the facility entering operation in 2020. Delacon, company history facility milestone
30,000 metric tons per year, after a 50% expansion Capacity reported following the expansion of the Engerwitzdorf facility. Cargill, 2025 capacity announcement
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What the acquisition does—and does not—establish

The deal establishes a strategic expansion of Cargill’s business-to-business animal-nutrition capabilities. It does not, by itself, establish the value of the transaction, the exact day it closed, or that phytogenic additives outperform other feed approaches. Evaluating an additive for a particular operation requires product-specific evidence, approval status, permitted use in the relevant location, target species, intended function, and producer economics. Cargill’s materials advise customers to seek local guidance for product-specific details.

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