Cargill in Russia
Founded in 1865, Cargill is the largest American private company and the leading international supplier of agricultural and food products and services. The company employs 142,000 people in 66 countries of the world.
Cargill has got significant experience of cooperation with Russia. First grain supplies to the USSR started in 1963, and in 1970s their volume increased several times. This long-standing cooperation laid down a solid foundation for the work of Cargill in Russia.
1991 saw the opening of the first Cargill office in Russia. Currently, there are three Cargill enterprises operating in the country. They are located in Efremov (Tula region), Krasnodar and Rostov-on-Don. The total number of Cargill employees in Russia is almost 1,500. Cargill is one of Russia’s biggest foreign investment partners which have invested over $700 million into the development of the country’s agriculture and food industry.
Products & Services
Cargill has activities in the following areas in Russia:
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Moscow
Cargill’s office in Moscow is the company’s coordinating center. It also provides consulting and auxiliary services to foreign branches of the company that deal with imports and exports of various agricultural and food products (meat and poultry, juice concentrates, various food ingredients, raw sugar, cacao products) on the Russian market.
Cargill imports raw cane sugar from Brazil, processes it in Russia and sells via its own distribution network. During the sugar beet campaign Cargill also actively trades white beet sugar.
Efremov
Cargill made its first investments in Efremov in 1994. Since then, over $200 million have been invested into OAO Efremovsky Starches and Sweeteners Plant. The funds were directed to modernization of the existing capacities and construction of new ones. Lines for malt production and complex wheat processing, as well as vegetable oil and fat refinery were built on the territory of the industrial complex. Then, production of native wheat gluten, an ingredient used to enhance the quality of bakery products, was launched for the first time in Russia. A line for mixed feed production has been put into operation in June 2009.
Krasnodar
In 1993 Cargill started its operations in Krasnodar from selling seeds and delivering consulting and financial services to local agricultural producers. Since 1998, the company has been actively selling and exporting grain.
Today the grain branch of the business comprises a trading company in Krasnodar, elevators in stanitsas Brukhovetskaya, Pavlovskaya and Tbilisskaya, Krasnodar Territory, and in the village Davydovka, Voronezh region, which specialize in storing, drying and shipping wheat, sunflower seeds, corn and barley. Cargill also owns a river terminal for grain shipment in Rostov-on-Don.
Cargill in Russia: Chronology
| 1991 | Cargill opened representative office in Moscow. |
| 1994 | Cargill made first investments into the Starches and Sweeteners Plant in Efremov, Tula region (ОАО Efremovsky Starches and Sweeteners Plant located 330 km South-East of Moscow). |
| 1998 | Cargill purchased controlling stake in the grain elevator enterprise located in the South of Russia in the stanitsa Bryukhovetskaya, Krasnodar Territory. |
| 2004 | The company started construction of two plants at Efremov industrial complex – a Starches and Sweeteners facility using wheat raw materials and a malt facility. Investments in the project totaled $100 million. |
| 2005 | Cargill acquired 2 grain elevators in the Krasnodar Territory and a river terminal for grain shipment in the Rostov region. |
| 2005 | Cargill started construction of its first Russian vegetable oil refinery at Efremov industrial complex. Production was launched in 2007. The plant has got unique bottling equipment for liquid oils such as sunflower, rape and corn oil, as well as packing equipment for full range of tropical fats and oils, like palm and coconut oils. |
| 2006 | Cargill launched Russia’s first facility for production of native wheat gluten at Efremov industrial complex. Since then, the company has been able to provide bakeries with domestic-produced ingredient ensuring better product quality and more flexible expense management. |
| 2006 | Cargill started construction of its first feed mill on the territory of Efremov industrial complex. The annual production volume will make about 260,000 tons. |
| 2007 | Cargill started construction of a new production line for special starches used in paper and corrugated cardboard industries. Investments in the project totaled $17 million. This new facility is based on capacities of the already existing Efremov Starches and Sweeteners Complex in the Tula region. Production capacities of the new line launched in the second quarter of 2008 allowed to manufacture up to 90,000 tons of dry starch a year. |
| 2009 | A plant for animal feed production is put into operation at Efremov industrial complex. The plant manufactures feeds for Russian beef, pork, poultry and dairy producers. |
| 2010 | Cargill Started the construction of its first poultry processing facility in Russia. The majority of products will be served to McDonald’s in Russia. |
