Swine flu in Asia leads to rise in profits for Cargill
Global demand for meat saw the Minnesota-based agribusiness giant's revenue grow by 4 per cent in Q2
Global demand for meat following African swine fever afflicting pigs in China and south-east Asia has led to an increase in profits for Cargill.
The Minnesota-based agribusiness giant saw revenue increase by 4 per cent to $29.2bn in the second quarter ending November 30 and six month revenue grow by 3 per cent to $58.2bn.
Sales of protein (meat and eggs) were the largest contributor to fiscal second-quarter adjusted net profit of $1bn, the company said. The earnings increased 19 per cent from the same quarter a year before.
At the same time, net earnings on a US GAAP basis were $1.19bn for the quarter, an increase of 61 per cent from the previous year.
Cargill said that while results improved in its animal nutrition and protein business, they declined in the food ingredients and applications business, and in origination and processing, which houses a high-volume grain trading business.
The company also announced that it is working to limit greenhouse gas emissions in its global supply chains by 30 per cent per ton of product in the next decade.
Cargill deals in commodities from wheat to road salt and also operates plants that slaughter and cut beef, chicken and turkey.
Global meat prices rose 17 per cent in the year to November 2019, “reflecting tight export availabilities against persistent strong import demand, especially from China”, according to the UN Food and Agriculture Organisation.
FURTHER READING: Global food prices hit 26-month high in November