Cargill scraps its crop inputs business in Central and Eastern Europe

By Vince Bamford

- Last updated on GMT

Cargill will shift its focus in the regions to crop origination. Photo: iStock - ZoneCreative
Cargill will shift its focus in the regions to crop origination. Photo: iStock - ZoneCreative

Related tags Eastern europe Ukraine Europe

Cargill is to axe its crop inputs business – comprising seeds, fertilizer and chemicals – in parts of Central and Eastern Europe.

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.

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Posted by dario peri,

Nous n'avons pas necessite de cette societe pour notre agricolture,il vive seulement ou les agriculteurs sont vraiment pauvres,ils donent rien a l'agriculteur,il gagne sur tout semence,engrai e sur le produit final,ce mieux qu'il restent dans leur pays,regardez dans le Mexique ou les campesinos travaillent avec cette ste pour vivre seulement!!!!!

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Posted by dario peri,

This is a very disaster for european agricolture! These people only find acceptance in countries where agriculture is that of 50 years ago, especially in Eastern European countries, where small farmers work with no prospect and only live

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