Grain trader Cargill's second quarter profits jump as global meat demand rises
P.J. Huffstutter & Arunima Kumar, Reuters
January 7, 2020
CHICAGO/BENGALURU (Reuters) - Commodities trader Cargill Inc [CARG.UL] on Tuesday posted a quarterly profit rise of more than 19%, as the animal nutrition and protein business unit tapped into rising global demand for meat untainted by the spread of African swine fever in Asia.
Cargill said it was prepared for the changing demand patterns and the shift in global protein flows caused by the disease that has killed up to half of China’s hog herd since August 2018 and pushed Chinese pork prices to record highs.
The global markets for pork, beef and chicken have been reshaped as China has been scouring the world for new sources of meat.
The largest privately held U.S. company by revenue has seen both plant- and animal-based protein as crucial to its success in recent years. Cargill and other agricultural companies have been hit by a sour farm economy, adverse weather and the U.S.-China trade war.
Those strains are still being felt. Cargill said some of its regional origination and processing businesses, particularly in North America, were hurt by trade uncertainty and weather disruptions.
Cargill said adjusted operating earnings rose to...