Beef and turkey returns drive Cargill profit surge

Global commodities trader Cargill says strong results from its beef and turkey businesses in North USA are the main driver behind its latest sharply higher adjusted quarterly profit.

In the second quarter ended November 30, Cargill’s adjusted operating earnings jumped nearly 80% to $1.03bn (€973m), from $574m (€542m) in the same quarter a year earlier.

“We are energised by these results,” said David MacLennan, chairman and chief executive at Cargill.

“Our increased profitability gives us confidence we are achieving the broad-based structural improvements we have sought.”

The Animal Nutrition and Protein segment was the largest contributor to adjusted operating earnings in the second quarter. The North American protein group delivered strong performance across its product lines.

Thanksgiving demand boosted whole-bird sales in the turkey business, while a more normalised cattle supply, optimised production and consumer demand contributed to a recovery in beef from last year’s low.

Quarterly net income including one-time items fell to $986m (€931.5m) from $1.39bn (€1.23bn) a year earlier, when sales of Cargill’s US pork business and a steel mill bolstered results.