FOOD

Cargill Fact Sheet

Fact Sheet • January 2010

T oday, the global food system is in the hands of alarmingly few corporations that
can run roughshod over consumer health, the environment and human rights.
Cargill is one of these companies. While its name may not be on the package,
Cargill produces many processed food ingredients consumers see in the fine print
on food labels like high fructose corn syrup, hydrogenated vegetable oils, citric acid,
lecithin and xanthan gum.1 It’s a top beef and pork packer, turkey processor and
cattle feedlot operator.2 Cargill is probably the largest grain trader in the world, with
hundreds of grain terminals worldwide and a fleet of cargo ships that can connect
its global network of storage facilities.3 It even provides eggs for McDonalds’
breakfasts.4 Cargill’s agribusiness empire effectively sets the American dinner menu,
but consumers may not even know the com­pany’s name.

And Cargill has made a tidy profit doing it. Cargill is the
largest private U.S. company, with 160,000 workers in 67
countries in 2009.5 Even during the 2008 economic down-
turn, Cargill reported sales of over $120 billion and record
profits of almost $4 billion, its sixth straight year of record-
breaking earnings.6

Cargill Profited from 2008 Food Crisis: Cargill’s 2008

record earnings were driven by the high grain and fertil-
izer prices of that year. Generally, the high prices were
also responsible for pushing 130 million people around the
world to the brink of starvation. As Cargill CEO Greg Page
explained, “Cargill had an opportunity to make more money
in this environment, and I think that is something that we
need to be very forthright about.”7 High crop prices drove
up fertilizer prices. In 2008, Cargill’s majority ownership in
fertilizer giant Mosaic Company was the largest contributor
to its high earnings.8

Cargill Recalled 20 Million Pounds of Beef and Poultry over

Past Decade: In 2000, Cargill recalled 16.7 million pounds of
poultry products contaminated with Listeria that were linked
to four deaths and three miscarriages.9 In 2002, a Cargill
subsidiary recalled 2.8 million pounds of ground beef con-
taminated with E. coli that sickened more than 50 people.10
In October 2007, Cargill recalled 845,000 pounds of fro-
zen ham­burger patties possibly contaminated with E. coli.11
One month later, Cargill recalled another million pounds of
ground beef because of possible E. coli contamination.12
Cargill Promotes Controversial “Food Safety” Technolo-
gies: Cargill has pushed technological fixes for food safety
challenges that could be better addressed through stron-
ger sanitation measures. Cargill testified to Congress that
treating meat with carbon monoxide would inhibit E. Coli
growth days before a 2007 Cargill recall — and much of
the recalled meat was treated with carbon monoxide.13
Carbon monoxide treatment is not approved for inhibiting
foodborne-illness-causing bacteria, but it does extend the
time that meat stays red, which could deceive consumers
into believing it is fresher than it actually is.14 Cargill also
uses irradiation in some of its meat processing operations
in an effort to kill bacteria.15 Generally, in scientific studies
of animals, irradiated food has been shown to cause pre-
mature death, stillbirths, mutations, immune system failure
and stunted growth.16

Cargill’s Relentless Free Trade Push: Since the Nixon

administration,17 Cargill insiders joined both Republican
and Democratic administrations to negotiate and promote
free trade deals that put agribusiness interests before the
interests of consumers or farmers. High prices for food
like the corn and wheat that Cargill exports coincided with
low prices for the tropical crops like cotton and cocoa that
Cargill purchases — a situation which benefits Cargill but
makes the cost of food beyond the reach of many people
in developing countries. Cargill was a staunch advocate
of the World Trade Organization, the North American
Free Trade Agreement and China’s entry into the WTO. In
2009, Cargill was still on key advisory committees of the
U.S. Trade Representative.18
Cargill’s Grain Trade Dominance Pressures Farmers: Car-
gill sells farmers many of the inputs they need, like fertil-
izer and animal feed, and buys much of their output, such
as crops and livestock, for trading and processing.19 As one
of the leading players in nearly all stages of production,20
Cargill has a huge impact on farmers’ bottom lines. In
addition, as a dominant buyer in the grain market, Cargill’s
support of genetically modified crops effectively encour-
ages farmers to grow these controversial crops. Cargill has
pursued a joint venture with Monsanto, a company called
Renessen, which has released a genetically modified crop
for use in animal feed The company has also developed
a technology that processes high-oil corn (often made
from genetically modified corn) into biodiesel and animal
feed.21 A lack of market opportunity for non-genetically
modified crops drives farmers to grow the crops that grain
processers want to buy.22
Cargill Tropical Purchases Plagued with Charges of Envi-
ronmental and Labor Exploitation. Cargill’s global opera-
tions have contributed to tropical rainforest clearing and
it has been accused of ignoring widespread labor abuses
— including forced child labor — in markets where it buys
tropical products.
Cargill Turns Blind Eye to Cocoa Slavery: Cargill was
sued for ignoring prevailing child labor abuses in the Côte
d’Ivoire cocoa plantations.23 As a major cocoa buyer in
the region,24 Cargill had the ability to prevent labor abuses
but chose to ignore the conditions instead, according to
the lawsuit.25
Cargill Soybean Purchases Clear Brazilian Rainforest:
Cargill was targeted in a 2006 Greenpeace exposé for its
contribution to Brazilian rainforest destruction with an
illegally built soybean export terminal and financing the
conversion of rainforest to soybean production.26
Cargill Palm Oil Operations Contribute to Deforestation:
Cargill has sizeable palm oil operations in Southeast Asia.27
Generally, palm oil production contributes to rainforest
destruction due to the “slash and burn” methods work-
ers use to clear the plantations. These practices have also
potentially made Indonesia the third-largest carbon emitter
in the world, behind the United States and China.28
Cargill Cotton UK Operates in Hotbed of Forced Child
Labor: Cargill’s giant global cotton operation purchases
between $50 and $60 million worth of cotton from Uz-
bekistan annually, although it denies having anything to
do with picking cotton in the country.29 Although Cargill
doesn’t own or pick the cotton, widespread forced child
labor in Uzbek cotton production is well-known.30
Consumers eat Cargill’s industrial food products every day
without even knowing it. Cargill’s considerable market
power influences what consumers eat and what farmers
grow — here in America and worldwide. The Obama ad-
ministration has pledged to take on the corporate powers
in agribusiness that hamper competition.31 Cargill would
be a good place to start.
Endnotes
1 Cargill Food Ingredients. Available at http://www.cargill.com/food/
emea/en/index.jsp and on file, accessed June 26, 2009; Cargill Food
Ingredients - Citric Acid. Available at http://www.cargill.com/food/
lat/en/products/citrates/citric-acid/index.jsp and on file, accessed
June 26, 2009; Cargill Texturizing Solutions. Available at http://
www.cargilltexturizing.com/products/cts_prod.shtml and on file,
accessed June 26, 2009; Cargill Texturizing Solutions: Products -
Lecithins. Available at http://www.cargilltexturizing.com/products/
lecithins/cts_prod_lec.shtml and on file, accessed July 9, 2009;
Cargill Texturizing Solutions: Products - Hydrocolloids - Xanthan
Gum - Overview. Available at http://www.cargilltexturizing.com/
products/hydrocolloids/xanthan/cts_prod_hydro_xan.shtml and on
file, accessed July 9, 2009; Cargill Inc. “Cargill Food Ingredients
NA: Products - Oils & Shortenings.” Available at http://www.cargill.
com/food/na/en/products/oils-shortenings/index.jsp and on file, ac-
cessed July 9, 2009.
2 Hendrickson, Mary and Heffernan, William. University of Missouri.
“Concentration of Agricultural Markets.” April 2007; Page, Greg.
CEO Cargill Foods. “Trusting photosynthesis.” Speech given at the
Chautuaqua Institute. August 2008. Available at http://www.cargill.
com/news-center/speeches-presentations/trusting-photosynthesis/
index.jsp and on file, accessed June 26, 2009.
3 Page. “Trusting photosynthesis.” 2008; U.S. Department of Agricul-
ture, Economic Research Service. “Cargill’s acquisition of Continen-
tal Grain: anatomy of a merger.” Agricultural Outlook. September
1999 at 21-22; Cargill Ocean Transportation. Available at http://
www.cargill-ot.com/ and on file, accessed June 26, 2009.
4 Cargill Inc. Press release. “McDonald’s visits Sunny Fresh in Mason
City to present supplier award.” April 12, 2006.
5 “America’s largest private companies.” Forbes.com. November
3, 2008. Available at http://www.forbes.com/2008/11/03/largest-
private-companies-biz-privates08-cx_sr_1103private_land.html,
accessed June 26, 2009 and available on file; Cargill, Inc. “Our
company - at a glance.” available at http://www.cargill.com/com-
pany/glance/index.jsp and on file, accessed June 26, 2009.
6 Cargill Inc. Press release. “Cargill reports fourth-quarter and fis-
cal 2008 earnings.” August 19, 2008; Cargill Inc. Press release.
“Cargill reports fourth-quarter and fiscal 2007 earnings.” August 21,
2007.
7 Page. “Trusting photosynthesis.” 2008.
8 Mosaic Company. Securities and Exchange Commission. 10K Filing.
July 29, 2008 at 1; Page. “Trusting photosynthesis.” 2008.; Cargill
Inc. Press release. “Cargill reports first-quarter fiscal 2009 earnings.”
October 13, 2008.
9 USDA FSIS. Press release. “Turkey And Chicken Products Recalled
From Texas Plant For Possible Listeria Contamination;” FSIS-
RC-00-075. December 14, 2000; Phillip, Brasher. “Record recalls
hits meat industry.” The Des Moines Register. December 8, 2002;
Ruble, Renee. “CDC: four deaths linked to recalled poultry prod-
ucts.” The Associated Press. December 16, 2000.
10 USDA, Food Safety and Inspection Service. Press release. “Wis-
consin Firm Expands Recall Of Ground Beef For Possible E. coli
O157:H7.” FSIS-RC-086-2002. October 2, 2002; Egerstorm, Lee.
“Recall of ground beef from Minnesota packing plant expands.”
Saint Paul Pioneer Press. October 3, 2002.
11 USDA FSIS. Press release. “Wisconsin Firm Recalls Ground Beef
Products Due to Possible E. coli O157:H7 Contamination.” Oct. 6,
2007.
12 “Company recalls 1 million lbs of beef possibly tainted by e-coli.”
Associated Press. November 3, 2007.
13 “Cargill recall heightens house concerns with CO-treated meat.”
FDA Week. November 9, 2007; Weiss, Rick. “FDA Is Urged to Ban
Carbon-Monoxide-Treated Meat,” Washington Post, Feb. 20, 2006
14 U.S. Food and Drug Administration, Center for Food Safety and
Applied Nutrition. “Agency response letter GRAS notice No. GRN
000143.” July 29, 2004; FDA Week. “Cargill recall heightens
house concerns with CO-treated meat.” November 9, 2007; Weiss,
Rick. “FDA Is Urged to Ban Carbon-Monoxide-Treated Meat,”
Washington Post, Feb. 20, 2006.
15 Griekspoor, Phyllis Jacobs, “New leader, new challenges: As long-
time Cargill exec Bill Rupp takes over as president, he discusses
industry issues from food safety to worker shortages.” Knight Ridder
Tribune Business News. June 3, 2007.
16 Anderson, D. et. al. “Irradiated laboratory animal diets: Dominant
lethal studies in the mouse.” Mutation Research, 80:333-354, 1981;
Vijayalaxmi and Rao, K. V. “Dominant lethal mutations in rats fed
on irradiated wheat.” Inter Journ Rad Biol, 29:930-8, 1976; Renner,
H. W. et. al. “An investigation of the genetic toxicology of irradiated
foodstuffs using short-term test systems. III- In vivo tests in small
rodents and in Drosophila melanogaster.” Food Chemistry and Toxi-
cology, 20:867-878, 1982; Spiher, A. T. “Food Irradiation: An FDA
Report.” FDA Papers, Oct. 1968.
17 Oslund, John J. and Kennedy, Tony. “Pearce, a quiet navigator;
leaves Cargill after charting its course.” Minneapolis Star Tribune.
June 29, 1993.
18 Office of the U.S. Trade Representative. Agriculture Policy Advisory
Committee and Agriculture Technical Advisory Committee for Trade.
Updated May 7-8, 2009. Available at http://www.ustr.gov/about-us/
intergovernmental-affairs/advisory-committees and on file, accessed
June 26, 2009.
19 Cargill Ag Horizons. Available at http://www.cargillag.com/Market-
ing/CargillAgSolutionsCenter.aspx and on file, accessed June 26,
2009.
20 Serres, Chris. “Cargill looms as silent giant.” Minneapolis Star
Tribune. December 4, 2008; Hendrickson, Mary and Heffernan,
William. University of Missouri. “Concentration of Agricultural
Markets.” April 2007.
21 Renessen, LLC. Press release. “Renessen receives final regulatory
clearance for world’s first crop-based quality trait for animal feed
industry.” February 6, 2006; Ulrich, James F. et al. “Products com-
prising corn oil and corn meal obtained from high oil corn.” U.S.
Patent No. 6,648,930. November 18, 2003.
22 Knight, Danielle. “Biotechnology: Who’s liable for genetically
modified crops?” Inter Press Service. February 25, 2000; Desquil-
bet, Marion, and Bullock, David. “Who pays the cost of non-GMO
segregation and identity preservation?” American Journal of Agricul-
tural Economics, vol.91, iss.3, at 656.
23 Global Exchange. Press release. “Harkin-Engel Protocol on choco-
late and child slavery expires on July 1.” June 30, 2005; “Human
rights group sues three U.S. firms.” Los Angeles Times. July 16,
2005 at C3; “Ending the bitter taste of slavery.” Chicago Tribune.
November 8, 2002 at 36.
24 Raghavan, Sudarsan and Chatterjee, Sumana. “A slave labor force
of youths keeps chocolate flowing west.” The Philadelphia Inquirer.
June 24, 2001.
25 Plaintiff’s complaint at 9-10, Doe v. Nestle, (C.D. Cal. 2005).
26 Greenpeace. “Eating up the Amazon.” April 2006 at 37-39.
27 Mckinney, Matt. “In Search of Cheap Food.” Minneapolis Star
Tribune. November 30, 2008.
28 Walsh, Bryan. “Despite the Economy, Obama Vows to Press Green
Agenda.” Time Magazine. November 19, 2008; Mckinney, Matt.
“In Search of Cheap Food.” Minneapolis Star Tribune. November
30, 2008.
29 International Crisis Group. “The Curse of Cotton: Central Asia’s
Destructive Monoculture.” Asia Report No. 93. February 28, 2005 at
39, note 297.
30 U.S. Department of State. 2008 Human Rights Report: Uzbekistan.
February 25, 2009.
31 Weiser, Philip J. Deputy Assistant Attorney General, U.S. Depart-
ment of Justice. “Toward a Competition Policy Agenda for Agricul-
ture Markets.” Prepared Remarks for the Organization for Competi-
tive Markets 11th Annual Conference, St. Louis, Missouri. August 7,
2009.
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