Weak demand sees Cargill Q2 profits fall 13%

By Jane Byrne contact

- Last updated on GMT

istock.com/archerix
istock.com/archerix

Related tags: Risk management, Cargill

Earnings and revenues dipped for agribusiness giant, Cargill, in its 2016 second quarter results.

However, the Minneapolis headquartered company reported that higher results in its animal nutrition division offset a decline in animal protein, mainly red meat. 

Cargill said its profit in Q2 was $574m, down 13% from the same period 12 months previously. 

Revenues for the period dipped 10% to $27.3bn, it said, reflecting lower commodity prices and weaker demand in some markets

Effective market segmentation and favorable commodity costs bolstered earnings in global animal nutrition. Areas of particular strength included the US and Vietnam overall, and aquaculture nutrition in Latin America, said the processor and commodities trader.

“Within the segment, the grain and oilseed supply chain businesses were well ahead of last year on a combined basis, boosted by improved soybean crush results in most geographies and by good risk management amid declining prices in well-supplied markets for agricultural commodities,”​ reported Cargill.

Related topics: Manufacturers

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