Adjusted operating earnings were down 10% from US$948m to US$853m compared to last year’s comparative period, while first-half earnings fell by 5% to US$1.74bn from the prior year.
Cargill’s Animal Nutrition and Protein segment was regarded as the company’s largest contributor to adjusted operating earnings as demand for beef and large supplies of fed cattle boosted beef production and sales to the domestic and export markets.
However, continued political instability in Central America and market challenges in Southeast Asia reduced results in the segment’s global poultry business. Other animal nutrition earnings were far below last year’s performance due to lower hog volumes in China and Vietnam.
Despite Cargill’s results decreasing compared to last year, the company’s chairman Dave MacLennan remained upbeat about the figures.
“Our teams executed in a world of uncertainty to bring the best solutions to our customers and the consumers they serve,” said MacLennan. “We are pushing to ready our businesses for the future with continuous improvement, financial discipline and a disruptive mindset.”
Cargill also paid tribute to the acquisition of the Colombian brand Campollo in December 2018, which they said advanced the segment’s strategy to better serve the growing protein demand in emerging markets.