Cargill missed financial goals this year and will be restructuring to “streamline and simplify” amid a downturn in global commodity prices, Reuters reports.
The Minnetonka-based agribusiness, the largest privately held company in the U.S., will have three divisions instead of five starting in September: Food, Ag & Trading and Specialized Portfolio.
The price of many agricultural goods have reached their lowest level since the end of 2020, according to World Bank data, which started with a steep decline in 2023.
“Our recent performance and the market trends unfolding in front of us have proven a clear and pressing case for change,” CEO Brian Sikes said in an internal company email obtained by Reuters.
The company did not address specifics of the plan but said in a statement the new strategy will be “carrying forward the values and core strengths that have defined our success from the beginning.”
“As we look to the future, we have laid out a clear plan to evolve and strengthen our portfolio to take advantage of compelling trends in front of us, maximize our competitiveness, and, above all, continue to deliver for our customers,” Cargill said in a statement to the Star Tribune.
The restructuring marks one of Sikes’ first major moves since becoming CEO in January 2023. He has already taken a new direction with the company’s digital strategy, opening a tech hub in Georgia and laying off about 200 IT workers globally.
Fellow Minnesota-based agribusiness CHS has also seen revenue and earnings fall amid lackluster prices for grains and oilseeds shipped around the world and tighter profit margins.