Booming demand for Thanksgiving turkey and beef in the US
boosted Cargill's profits, while processing margins for cocoa also improved.
And the agribusiness giant reported rising earnings from
grain trading and processing segment, thanks to good global demand for the
bumper US corn and soybean crop.
The privately owned company saw adjusted profits rise 80%
year-on-year, to $1.03bn, in the three months to November 30, although net
profits were sharply down due to the sale of Cargill's pork and steel
businesses a year ago.
Cargill reported revenues at $26.9bn, down 1% year-on-year.
Rising meat demand
Cargill's animal feed and protein segment was the biggest
contributed to profits, thanks to rising meat demand.
"Thanksgiving holiday demand boosted whole-bird sales in the
turkey business, while a more normalised cattle supply, optimized production
and healthy consumer demand contributed to a recovery in beef from last year's
Cargill's egg business "continued to see strong sales
And the global poultry business saw rising earnings, helped
by good results in Asia.
Rising cocoa crush
Earnings in the ingredients also bounced back.
"The segment continued to strengthen its operational
efficiencies across the board, achieving good gains in sweeteners and edible
oils in most regions," said Cargill.
"Cocoa and chocolate realized moderately better results as
improved press margins in Europe helped make up for crop difficulties in West
Africa that limited origination volume."
The company's grain trading and processing business was
slightly up, with good demand for the record US soybean crops, thanks to "domestic
and international growth in livestock production and reduced South American
competition for exports".