Agribusiness giant Cargill is feeling the pinch of the ongoing trade war between the US and China, with a 20 per cent fall in net earnings for the second quarter of its reporting year.
Cargill, a major player in the soybean sector, has been impacted by tariffs on US soybeans going to China.
Along with that, China’s outbreak of swine flu has hit demand for feedstock, also bringing a bearish tone to the market.
Year on year earnings were at
Net earnings came in at $A1.073 billion million for the quarter, down 20pc on the year before at $A1.34 billion
The global ag powerhouse’s animal nutrition and protein segment, its largest business division, was the worst performing in the recent numbers, while the news was better in its edible oils division.
In Australia, the company is a big player in edible oils, with major refineries at Newcastle, NSW and West Footscray, in Melbourne.
The company said ongoing political instability in Latin America was also a factor in lower than hoped for sales.
Poor ethanol prices in the US also hit, hurting the starch and sweetener division in particular.