RUSSIA – Cargill will take a further step back in elevating Russian grain in the new export season starting in July.
“As grain export-related challenges continue to mount, Cargill will stop elevating Russian grain for export in July 2023 after the completion of the 2022-2023 season,” Cargill said.
The US-based grain handling giant cited mounting challenges to its grain export operations in Russia as global grain supplies were disrupted by the 13-month-old war in the region, shooting wheat futures prices to multi-week highs.
Cargill has been one of the largest non-Russian exporters of Russian wheat, and the announcement is a setback for Russia’s goal to secure more foreign participation in its grain export trade.
“Cargill intends to continue shipping grain from Russia to destination markets in line with our purpose to nourish the world. Cargill’s other essential food and feed activities, including starches and sweeteners, oils and fats, and animal feed, are not impacted by these changes,” Cargill’s statement elaborated.
According to a report by Bloomberg, commodity trading house Viterra also plans to terminate its Russian activities but is yet to make a formal announcement.
According to the US Department of Agriculture, Russia is the largest supplier of wheat to global markets, with its 33 million tonnes accounting for about 17% of the total in 2021.
In a comment to Reuters, Russia’s agriculture ministry said that the development would not affect the volume of the country’s domestic grain shipments, regardless of who manages the grain export assets.
Nestle’s partnership with National Fish and Wildlife Foundation
Meanwhile, Nestlé and Cargill have teamed up with the National Fish and Wildlife Foundation (NFWF) to support sustainable grazing practices across 1.7 million acres in the U.S. over the next five years.
The two world’s largest food companies will invest a combined US$15 million leveraging up to US$15 million in federal funds and thus leading to the activation of up to US$30 million in grant funding over the next five years.
The partnership will help scale the adoption of voluntary conservation practices that help fight climate change, bringing together private landowners and local conservation organizations to support voluntary land management practices, improve water management, and restore wildlife habitats.
“At the heart of Cargill’s BeefUp Sustainability program is the unique ability to connect strong partners, inventive solutions, and financial resources to scale impact in the fight against climate change,” said Jeffrey Fitzpatrick, Cargill BeefUp Sustainability Program Lead.
The partnership could benefit thousands of cattle producers in the country as they implement voluntary practices that will help benefit hundreds of species.
According to NFWF, the results over the next five years could see a sequester of up to 845,000 metric tons of carbon dioxide.
“This partnership is activating the work needed in our supply chains to help create a regenerative, healthy food system,” said Emily Johannes, Director, Diverse and Sustainable Sourcing at Nestlé USA.