Hormel Foods and Cargill two of the largest US meat processors have agreed to create a joint venture to sell beef and pork under an existing Hormel brand.

Cargill's Excel unit, the second-largest U.S. beef processor, and Hormel, the fifth-largest in pork, agreed to form Precept Foods, which will be based in Austin, Minnesota, the companies said in a statement.

Precept Foods will sell steaks, chops and other products to grocers under Hormel's Always Tender brand.