Following a comprehensive review of its grain and oilseeds businesses in Central and Eastern Europe, Cargill is to stop providing crop inputs to farmers and to fully exit from these activities by the end of May 2016.
This change will affect Cargill’s businesses in Hungary, Romania, Russia, Slovakia, Ukraine, Bulgaria and Poland. Going forward, the company will refocus its attention on its grain and oilseeds origination, merchandizing and trading activities in these markets.
Corinne Holtshausen, Cargill spokesperson told FoodIngredientsFirst: “Cargill has a strong heritage and pedigree as one of the world’s leading originators and traders of grain and oilseeds and remains committed to providing competitive solutions to source and purchase from farmers in Central and Eastern Europe. We will strengthen our origination and business footprint, with a target to increase our origination volumes and market share.”
These changes will impact roles and employees that are currently dedicated to these activities and is expected to potentially impact around 180 people across the countries involved in crop input activities. The actual number per country is subject to discussion with the employees’ representatives and a consultation process has begun in the impacted countries.
While Cargill’s crop inputs business has had some successes in Eastern Europe, the company has been unable to realize many of the expected synergies between origination and crop inputs.
The Black Sea region remains a key focus for strategic growth and Cargill will continue to strengthen its existing investments and operations, including its network of port terminals and oilseed crush plants in the region. Cargill remains committed to Central and Eastern Europe and its agricultural sector. This change will allow the company to continue focusing on being the trusted partner to both farmer and non-farmer suppliers and to grow its business by increasing the volumes of grain and oilseeds.
Cargill will commence winding down its crop inputs activities immediately while continuing to service its customers over the next few months.
