Argentina
Contact InformationIn 1947 Cargill opened for business in Argentina – becoming the first overseas non-trading operation since the company’s founding in 1865. Cargill began its activities in Argentina with a seed research operation that later became the former Seed division.
From 1956 to 2007, Cargill operations in Argentina have changed dramatically:
• 1960s – Cargill entered into grain trading, animal nutrition and poultry processing.
• 1980s – Oilseed processing, import and distribution of fertilizers, and apple juice processing were added.
• 1990s – The portfolio included peanuts selection, malt and flour milling and in this decade olive oil and beef were added.
Since the mid 1980s the flagship of Cargill operations in Argentina is carried by grain trading and oilseed processing, which has allowed Cargill to be ranked as the largest Argentine agrifood exporter and the second largest Argentine exporter overall.
Cargill has a net export-oriented profile in Argentina, with exports accounting for over 90 percent of annual sales. By annual sales, Cargill Argentina is ranked third after the largest petroleum company and the largest steel maker.
The company has about 3,800 employees located in over 60 sites, which include country elevators, processing facilities, beef plants and commercial offices, located in the provinces of Buenos Aires, Córdoba, Entre Ríos, Santa Fe, Chaco, La Pampa, and Santiago del Estero, all of which account for over 75 percent of Argentina’s grain and oilseed production.
Current portfolio of Cargill activities in Argentina includes
• Processing and trading of barley and malt
• Flour milling and trading of flours and premixes
• Grain & Oilseed’ origination and trading.
• Processing of oilseeds (soybeans, sunflower and rapeseed) and trading of vegetable oils and protein meal/pellets
• Beef industry – Finexcor SRL
• Financial Services (Black River Asset Management and CarVal)
• Investment in Fertilizers – Mosaic SA
Assets include
• Five export terminals (Puerto San Martin, Villa Gobernador Gálvez and Alvear – Santa Fe Province; White – Buenos Aires Province; and Diamante – Entre Ríos Province)
• Four oilseed crushing plants (Puerto San Martin and Villa Gobernador Gálvez – Santa Fe Province; Ing. White and Necochea – Buenos Aires Province.)
• A network of over 50 country elevators (Provinces of Buenos Aires, Córdoba, Santa Fe, La Pampa, Entre Ríos, Chaco and Santiago del Estero)
• Two malt plants (Ing. White – Buenos Aires Province; and Alvear – Santa Fe Province.)
• Two beef processing plants (Nelson – Santa Fe Province; and Bernal – in the Great Buenos Aires area.)
• Seven flour mills (four in Buenos Aires Province; Pilar, Chacabuco, San Justo and Tres Arroyos; and the other three in the Provinces of La Pampa (Realicó), Santa Fe (Rosario) and Chaco (Resistencia)).
• Mosaic de Argentina SRL owns a large processing plant and a terminal port at Puerto San Martin (Santa Fe Province). In 2006 it started the first Argentine facility for producing phosphates.
Net export-oriented activities are Grain & Oilseed trading and processing (90 percent exports), Malt and Beef (70 percent exports in each case). Net domestic market-focused is flour milling (70 percent local market).
Grain & Oilseed trading and processing operations in Argentina are fully integrated with similar operations in Paraguay and Bolivia. In Argentina Cargill owns country stations, a processing plant and port, while in Bolivia assets include country elevators. A similar situation takes place with Cargill Argentina flour milling activities with its counterpart in Brazil.
• 2003-2007 – Cargill invested over US$350 Million in a new oilseed crushing plant and terminal port (Villa Gobernador Galvez), and the acquisition of the beef business and a grain terminal facility, the expansion of existing crushing capacities and the construction of a new malt plant.
• 2005/2004 – Entered the beef industry by acquiring the second largest Argentine beef exporter (Finexcor SRL)
• 2005 – Acquired an export terminal port (Punta Alvear SA)
• 2002 – Acquired an olive plantation in la Rioja Province
• 1995 – Entered the flour milling industry through the acquisition of one of the largest domestic flour millers (Minetti & Co)
• 1986 – Acquired a concentrated apple juice facility in Neuquén
• 1947 – Established Argentina presence
Community Activities
• Cargill Argentina has a long-standing record for its involvement in community activities dating to the late 1950s.
• In 1971 The Cargill Foundation was founded as an independent legal entity. It became the channel for conducting community activities. Through its by-laws, The Cargill Foundation is focused on improving the standard of living in the rural communities where Cargill operates.
• Since 2005 The Cargill Foundation has initiated a deeper community action program that includes three target areas: Improving educational conditions (Infrastructure, training and equipment); supporting NGOs (fire stations, Red Cross and rural-focused NGOs), and supporting improvement of medical equipment within public hospitals.
• The overall annual budget of The Cargill Foundation is about US$ 1.6 million, from which 2/3 is committed to education and the remaining 1/3 to NGOs (majority) and public health.
Basic criteria for community programs includes
• Long term impact/structural rather than charity
• Employee involvement (identifying projects and managing implementation)
• Community partnership: beneficiaries’ effort (time/workforce) are requested as counterpart
• Managed by Cargill Argentina Corporate Affairs
Community action includes
• Improvement of school infrastructure
• Support to education activities
• Promotion of rural culture
• Student and teachers training
• Promotion of entrepreneurship – Junior Achievement
• Improvement of hospital equipment and infrastructure
• Equipment and training for firemen
• Equipment for institutions that serve handicapped children
• Support for sustainable recovery of rural towns