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Agribusiness giant Cargill Inc. posted a gain in quarterly earnings driven by expanding global appetite for meat.
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Strong results in the animal nutrition and protein segment offset decreases in its agricultural trading operations and food ingredients, America’s biggest closely held company said in a statement Thursday.
Global protein led the way, with strong results in North America while Europe and Asia climbed on good poultry performance in China, Thailand and the U.K.
Results fell in the company’s origination and processing businesses in most regions "as trade- and weather-related disruptions continued to take a toll.”
Cargill and its agribusiness rivals are trying to become less reliant on crop trading as margins are squeezed by oversupplied markets and low prices.
The industry is navigating tumult ranging from Washington’s tit-for-tat tariff spat with Beijing to the wettest U.S. planting season on record and the spread of African Swine Fever in China. In July, Cargill said it was reviewing plans given operational headwinds and an earnings slowdown.
On Wednesday, the Minneapolis-based firm announced a reorganization of its animal nutrition division, adding the name "health” and appointing new segment heads, as it steps up efforts to get closer to consumers.
