Trade war impacts Cargill earnings

Trade war impacts Cargill earnings


Grains
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Global agribusiness giant Cargill has been hit by lower demand for its products, with year on year second quarter earnings down 20pc.

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Poor ethanol prices in the US have been one factor for lower Cargill earnings, along with the ongoing trade war with China.

Poor ethanol prices in the US have been one factor for lower Cargill earnings, along with the ongoing trade war with China.

Agribusiness giant Cargill is feeling the pinch of the ongoing trade war between the US and China, with a 20 per cent fall in net earnings for the second quarter of its reporting year.

Cargill, a major player in the soybean sector, has been impacted by tariffs on US soybeans going to China.

Along with that, China’s outbreak of swine flu has hit demand for feedstock, also bringing a bearish tone to the market.

Year on year earnings were at

Net earnings came in at $A1.073 billion million for the quarter, down 20pc on the year before at $A1.34 billion

The global ag powerhouse’s animal nutrition and protein segment, its largest business division, was the worst performing in the recent numbers, while the news was better in its edible oils division.

In Australia, the company is a big player in edible oils, with major refineries at Newcastle, NSW and West Footscray, in Melbourne.

The company said ongoing political instability in Latin America was also a factor in lower than hoped for sales.

Poor ethanol prices in the US also hit, hurting the starch and sweetener division in particular.

The story Trade war impacts Cargill earnings first appeared on Farm Online.

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