Cargill Agricultura (Cargill Agriculture), one of the local divisions of the American food industry group Cargill, last year incurred losses worth 5.5 million euros (20 million RON), against gross profit worth 4.1 million euros in 2004.
Companies involved in the farming sector had an extremely poor year in 2005, because of flooding that destroyed large crop-cultivated areas. Cargill Agricultura reported turnover worth 55.4 million euros (201 million RON) last year, a 36% rise against 2004, according to data published in the Official Gazette. In RON, Cargill's turnover grew by 21% last year.
"Cargill Agricultura consolidated its investments in Romania; last year it started a re-branding process for its latest acquisitions. This process, together with the necessary restructuring of new brands, which is routine practice for any new acquisitions, resulted in a transitional period for the company," said Jose Fauda, the company's financial manager.
Cargill started in Romania as a brokerage company handling cereal exports in 1996. Moreover, the Romanian division of Cargill still exports cereal and, in fact, remains as one of Cargill's core activities. According to Cargill officials, exports could reach some 500,000 tonnes of wheat in 2006 and 400,000 tonnes of sunflower. The company may also sell its corn and rape reserves, both on the EU market, where the group is already present, as well as in East-European countries. The American group, which has annual sales worth 60 billion dollars (48 billion euros), owns several companies in Romania. This year, Cargill representatives decided to start re-branding all the companies they own.
In the wake of this process, Comcereal Alexandria - acquired in 2004 - will become Cargill Cereale (Cargill Cereals), FNC Calarasi - bought in 2000 - becomes Cargill Siloz (Cargill Silo), while oil producer Olpo - acquired in 2005 - becomes Cargill Uleiuri (Cargill Oils).
According to Cargill information, Comcereal Alexandria is the largest company in the group in terms of locations (warehouses) and employees. Olpo is the second-largest in terms of employees and the high volume of investments it conducts.
Cargill estimates a 20% growth in turnover for this year, which will have consolidated results for all companies in the group reaching 120 million euros. Cargill representatives have announced an investment programme worth 5 million dollars (3.9m euros) for this year, aimed at modernising the silo network and the oil plant in Podari.
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