Following a review of its businesses in the regions, the company is to stop its crop inputs activity and focus on sourcing, distribution and marketing of grain and oilseeds. Cargill said it had enjoyed “some successes in Eastern Europe” with crop inputs but had been unable to realize the expected synergies between crop origination and crop inputs.
The change will affect Cargill’s businesses in Hungary, Romania, Russia, Slovakia, Ukraine, Bulgaria and Poland. The company is to start winding down crop inputs immediately and aims to complete the process by the end of May this year.
Other parts of world not affected
Cargill said its services to farmers in other parts of the world, including crop inputs, are not affected by the announcement.
The Black Sea region remains a key focus for strategic growth, said Cargill, which insisted it remains committed to the agricultural sector in Central and Eastern Europe. The company added it would bolster its investments in the region, including its port terminals and oilseed crush plants.
“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 Eastern Europe,” said a spokesman.
Plan to increase origination volumes
“We will strengthen our origination and business footprint, with a target to increase our origination volumes and market share,” added the business.
A consultation process has begun with employee representatives and the 180 staff who will be affected by the move away from crop inputs
The key bulk grains and oilseeds handled by Cargill are wheat, corn, barley and sorghum, as well as vegetable oils and meals.