Cargill Restructures Business With Commodities Trading Pressured

(Bloomberg) -- Cargill Inc. is streamlining its operations to three units from five in a bid to focus on its core expertise as the trading giant missed its profit goals, according to people familiar with the matter.

Minnesota-based Cargill, the biggest closely held company in the US, will have three enterprises: food; ag and trading; and a specialized portfolio, according to the people, who asked not to be named because the information hasn’t been made public. 

The move comes as trading profits have been squeezed in part by ample world crop supplies and a waning amount of cattle in the US that has pressured beef processors. Cargill rivals Archer-Daniels-Midland Co. and Bunge Global SA — which make up the so-called ABCDs of global agriculture commodity trading alongside Louis Dreyfus Co. — recently reported shrinking profits. 

Less than a third of Cargill’s businesses achieved their earnings goal in fiscal 2024, the people said. Cargill, which doesn’t publicly release its results, earlier this year halted steel trading in China after a slowdown in activity.

Cargill didn’t specifically address the restructuring, which was first reported by Reuters, but acknowledged the company announced a new strategy. 

“As we look to the future, we have laid out a clear plan to evolve and strengthen our portfolio to take advantage of compelling trends in front of us,” Cargill said in a statement.

Cargill’s previous structure was made up of five enterprises: agricultural supply chain; protein and salt; animal nutrition and health; food and bioindustrial; and financial services and metals.

Jon Nash, who now leads Cargill’s protein and salt enterprise, will head up the food division, according to the people. Roger Watchorn, who heads the agricultural supply chain, will helm ag and trading, while David Webster, whose current duties include chief risk officer, will lead the specialized portfolio, the people said.

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