How Does Cargill Company Work?

Cargill's primary activities include sourcing, processing, and distributing agricultural commodities like grains and oilseeds. They also manufacture a wide array of food ingredients, animal feed and nutrition products, and various industrial goods, serving diverse markets globally.

The company's value proposition lies in its extensive global supply chain, connecting farmers to markets and customers to essential supplies. They focus on reliability, innovation in product development, and a strong commitment to sustainable practices.

Operational processes are sophisticated, involving advanced manufacturing, extensive sourcing networks, technology development, and efficient logistics. These elements are crucial for how Cargill works and maintains its global presence.

In animal nutrition, Cargill provides integrated solutions based on scientific research, covering feed and health to enhance animal well-being and production efficiency. This includes specialized product lines aimed at improving digestive health and managing mycotoxin risks.

To adapt to market shifts, Cargill announced a global workforce reduction of approximately 5%, impacting around 8,000 jobs. This move supports the consolidation of its business units from five to three: Food, Ag & Trading, and Specialized Portfolio, with initial job cuts at its Minnesota headquarters starting in February 2025.

Cargill expanded its animal nutrition capabilities by acquiring two feed mills from Compana Pet Brands in September 2024. Further growth in South America was achieved through the acquisition of soy storage and crushing facilities from Granol in fiscal year 2024. The company also acquired two case-ready meat plants from Infinity Meat Solutions in August 2024, bolstering its offerings to retail customers.

In June 2025, Cargill acquired Teysgroup, a move to enhance its sports and entertainment venue management operations. Conversely, CHS Inc. acquired eight grain assets from Cargill in April 2024, a strategic divestiture for Cargill that aids CHS in optimizing its supply chain.

Cargill's competitive edge is built on its extensive scale, global reach, and integrated supply chain, facilitating connections between farmers and markets. The company's commitment to innovation is demonstrated through new sustainable ingredients like EverSweet stevia and plant-based chocolate alternatives, alongside advancements in animal nutrition.

Cargill is a dominant force in agriculture and food production, active in 70 countries and serving 125 markets. In North America, it ranks as the third-largest grain handler, boasting 196 facilities and 348 million bushels of storage capacity. This strong market position is built on customer loyalty and a vast global network that connects various stages of the food supply chain.

The company competes with other major global agribusinesses. Key rivals include Archer Daniels Midland (ADM), Bunge, Louis Dreyfus Company, and Wilmar International. These companies also have extensive operations across the agricultural value chain.

Cargill's fiscal year 2024 revenue of $160 billion, a decrease from $177 billion in 2023, reflects a challenging market. Volatile economic and environmental conditions, coupled with falling commodity prices for key crops, impacted performance, with less than a third of its businesses meeting earnings targets in FY24. Geopolitical instability, shifting demographics, and evolving regulations, such as EU deforestation-free supply chain laws, present ongoing challenges.

The company's future strategy focuses on enhancing efficiency and profitability. This includes organizational streamlining and a workforce reduction of approximately 5%. Significant investments in sustainability are also a priority, with $100 million allocated to efficiency and sustainability projects in 2024, and exceeding its 2025 operational emissions reduction target.