Sector News

Cargill sells U.S. ag-retail business to Agrium

July 8, 2016
Food & Drink

U.S. grain trader Cargill Inc has agreed to sell its ag-retail business in the United States to farming input seller and distributor Agrium Inc, the companies said on Wednesday.

Calgary-based Agrium, North America’s largest retail seller of crop inputs like seed, fertilizer and pesticides, will acquire 18 ag-retail locations in Nebraska, South Dakota, Minnesota, Wisconsin, Michigan and Indiana. The businesses have annual revenues exceeding $150 million.

The transaction, which does not include Cargill’s Canadian crop input business, is expected to close by the end of the third quarter after a regulatory review, they said.

It is the latest transformative move for privately held Cargill, which has been refocusing its operations by exiting some lower-margin businesses and expanding into higher-margin endeavors like food ingredients and aquaculture.

The 151-year-old grain trader is also trimming some operations in the face of slumping commodities prices and focusing on its core strengths such as grain trading and processing. The company said in February that it would stop selling seeds, fertilizer and crop chemicals in the Black Sea region.

“Cargill will focus on being the world’s leading merchant of grain and oilseeds,” said Roger Watchorn, Cargill’s lead for the North American agricultural supply chain.

Agrium, meanwhile, has been seeking to build or buy more stores in the United States to claim a quarter of the market in the country, CEO Chuck Magro told Reuters in May.

“The (Cargill) locations are in regions where we currently have a limited presence,” Magro said in a release on Wednesday.

The company bought 27 U.S. retail locations in the first quarter.

Agrium shares were moderately higher Wednesday at C$115.75.

By Karl Plume

Source: Reuters

comments closed

Related News

May 15, 2022

Blurred lines: Vitafoods Europe 2022 review

Food & Drink

Upon FoodBev Media’s return from Vitafoods 2022 – which took place from 10-12 May in Geneva, Switzerland – the team reflects on the event’s aim to bring together international nutraceutical suppliers and experts from across the globe.

May 15, 2022

Crunch time: Mondelēz to dump chewing gum to take bigger bite of chocolate and biscuits markets

Food & Drink

Following a strategic review last year, Mondelēz International is planning to sell its developed chewing gum business, which includes brands Trident and Dentyne. This is in addition to offloading its Halls cough drop brand, as the food giant focuses on generating 90% of revenue in its chocolates and biscuits businesses, including baked snacks.

May 15, 2022

Givaudan strengthens natural preservation portfolio with nitrite alternative for processed meat

Food & Drink

Givaudan has unveiled NaNino+, a patent-pending combination of plant-based ingredients and natural flavorings that can replace nitrite in processed meat. Designed with natural ingredients, it provides a lasting multi-sensorial food experience with a good taste, color and freshness.