MINNEAPOLIS, MINNESOTA, U.S. — Following a comprehensive review of its grain and oilseeds businesses in Central and Eastern Europe, Cargill announced on Feb. 17 that it will stop providing crop inputs to farmers and fully exit these activities in those regions by the end of May.
This change will affect Cargill’s businesses in Hungary, Romania, Russia, Slovakia, Ukraine, Bulgaria and Poland. Going forward, the company will refocus its attention on its grain and oilseeds origination, merchandizing and trading activities in these markets.
These are expected to potentially impact around 180 people across the countries involved in crop input activities.
Cargill has a strong heritage and pedigree as one of the world’s leading originators and traders of grain and oilseeds and remains committed to providing competitive solutions to source and purchase from farmers in Eastern Europe, the company said. The company will strengthen its origination and business footprint, with a target to increase its origination volumes and market share.
While Cargill’s crop inputs business has had some successes in Eastern Europe, the company has been unable to realize many of the expected synergies between origination and crop inputs.
The Black Sea region remains a key focus for strategic growth and Cargill will continue to strengthen its existing investments and operations, including its network of port terminals and oilseed crush plants in the region. Cargill said it remains committed to Central and Eastern Europe and its agricultural sector.
Cargill will start winding down its crop inputs activities immediately.