NARRABRI, NEW SOUTH WALES — Cargill has announced plans to discontinue operations at its plant in Narrabri, New South Wales, noting the facility “has been unprofitable for a number of years due to the changing landscape of the cottonseed market and the high cost of food manufacturing in Australia, especially significant increases in energy costs.”

Peter McBride, director of corporate affairs for Cargill in the region, said the plant is expected to run out of cottonseed by mid-October due to a reduction in affordable supply as a result of an ongoing drought in New South Wales. At that point, the company will proceed to shut down operations, he said.

“Overtime the cottonseed market has changed significantly as whole cottonseed it is now a highly valued feed product for both the domestic and international livestock markets,” McBride said. “The economies of crushing cottonseed have also changed due to lower oil yields in the seed and a range of suitable domestic and international product alternatives for cottonseed oil, meal and hull.”

He said the plant’s 28 employees will be offered employment opportunities at other Cargill sites.

McBride said Cargill remains committed to its grain and oilseed business in Australia and will continue to buy grain and oilseeds through its AWB/Grainflow network to support its domestic and international customers. The company’s canola crushing facilities in Newcastle, New South Wales, and Footscray, Victoria, will continue to operate as normal, he said.