USA —American global food corporation Cargill Inc has reported that its fiscal year 2022 revenue jumped 23% from a year earlier to US$165 billion, fueled by high global grain prices.
Russia’s invasion of the Ukraine in late February disrupted global commodities trading, especially corn, wheat and vegetable oil from the Black Sea breadbasket. With unknown supplies and deliveries from this region, global crop prices went higher, giving global companies that buy and sell grains from diverse markets a good position to profit from supply-chain disruptions.
Cargill is the latest global agricultural commodities trader after Archer-Daniels-Midland Co and Bunge Ltd to report solid earnings amid high farm products prices and robust global demand. Both of which, have also projected strong earnings through the remainder of 2022.
David MacLennan, chief executive officer, and Brian Sikes, chief operating officer added that the strong result was a result of the company putting its “deep expertise, unique position connecting the global supply chain, and extensive innovative partnerships to work”.
Cargill highlighted several investments undertaken in fiscal 2022 to modernize its global network of facilities, including US$300 million as part of a partnership with HELM to build 1,4-butanediol facility in North America, US$150 million to open a new pectin plant in Brazil and US$100 million to upgrade two cocoa processing plants in West Africa
Cargill has also closed a US$4.53 billion deal with Continental Grain to acquire chicken producer Sanderson Farms Inc, has acquired a stake in Latin American salmon producer Multi X, and has bought Aalst, one of Asia’s top chocolate companies.
“All of these investments — along with continuously upgrading our business-enabling capabilities — will help us bring more solutions to our customers while better connecting those who grow food to the markets that need it,” MacLennan and Sikes said.
During the fiscal year, Cargill also said it has made contributions totaling more than US$163 million to its partners and local communities. This includes US$20 million in new or expanded partnerships to improve food security and more than US$11 million for programs that support farmer livelihoods.
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