Strong domestic and export demand for US beef has boosted profits for US agribusiness Cargill, the world’s largest player in the agricultural commodities sector.

Reporting results for its financial year ending May 2018, Cargill said its meat protein business delivered an exceptional performance, making it the largest contributor to profits for the year.

Operating profits up

Cargill reported a 6% increase in operating profits to $3.2bn (€2.8bn), as profit margins held firm at 2.8%. Sales for the year increased 5% to just under $115bn (€99bn), making Cargill the largest privately owned company in the US by turnover. Net debt in the business rose by more than a fifth (+22%) last year to reach $9.2bn (€7.9bn).

In its grain-trading business, Cargill said it enjoyed its best fourth quarter in seven years as drought in Argentina and other growing regions triggered a scramble among buyers to secure supplies of maize corn, soya beans and other grains.

Demand for grains and oilseeds was muted following bumper crops in many large growing regions of the world.