Introduction Largest privately owned U.S. corporation Over a century old “Few facets of modern life ar unaffected or unreached by Cargill today” Trades world-wide commodities, operates manufacturing plants that process everything from seed grains to soybeans to salt. Cargill’s annual sales worldwide in 1979 was $12.6 billion

Cargill’s Corporate Origins In 1865, Will Cargill bought into grain elevators in Iowa Soon joined by 2 of this brothers in the business By 1980, the Cargill’s controlled most grain posts along major railways in North Dakota, South Dakota, Iowa, Minnesota, and Wisconsin Expansion continued with grain terminals on Great Lake ports Soon profits allowed the Cargill’s to venture into areas outside of grain The Cargill empire was almost lost In 1895, John H. MacMillan married into the Cargill family and became the saving grace of the business

Expansion at Home and Abroad Cargill launched direct sales offices in the East The Cargill’s now handled grain from the local elevators to the final market in the East 1932, took over grain export elevator in Albany, NY Cargill’s took over the Chicago market to become the largest grain trader in the area WWII ended direct private grain exports Cargill benefited from the war by diversifying operations After the war created an oasis of opportunity for Cargill as the U.S. became the world’s main food supplier while countries rebuilt themselves Ag exports in the U.S., mainly wheat and flour, rocketed from 48 million bushels in 1944 to 503 million in 1948!

Government Support: Public Law 480 In 1954, the U.S. government created “Public Law 480” "lay the basis for a permanent expansion of our exports of agricultural products with lasting benefits to ourselves and peoples of other lands.“ quote from President Eisenhower (Wikipedia) Serve 2 purposes for Cargill, Inc.: 1)allowed for an increase in exports 2)allowed for Cargill (and others) to enter into foreign markets and then helped to increase ease of direct commercial sales in those markets Other government programs that increased exports: Commodity Credit Corporation (CCC) Barter Program 70% of grain exports from the U.S. were government financed in some years!

Cargill’s Domestic Structure Domestically the corporation operates at 3 main hubs of the grain collection and distribution 1) local elevators 2) sub-terminals and terminals 3)export elevators located at major U.S. ports In the 1950’s and 60’s the U.S. government, through the CCC, bought up excess grain to help keep prices from falling Cargill stored much of the excess grains in their own facilities, allowing them to get paid over $76 million from the government

Cargill’s Domestic Structure Cont. The transportation sector was a huge part of Cargill’s market takeover. In the 1940’s Cargill dominated the river transportation system with the widening of the Minnesota River channel and the additional use of barges and tow boats In the 1960’s Cargill convinced the Interstate Commerce Commission to restructure railway rates and regulations Cargill also helped to establish “Rent-A-Train” This put even more limitations on the options available to small farmers in grain sales

Financing the Cargill Empire It is incredibly expensive to cover the costs of carrying grain from local elevators to the final market Even Cargill does not have the finances to do it Cargill relies on banks and financial institutions, along with networking advantages Chase Manhattan Bank: John Peterson left to become Cargill’s chief financial officer First National Bank of Minneapolis: President George H. Dixon also serves as a director of the Cargill Foundation Insurance companies: short-term loans to build grain elevators, storage bin, or the like Public financing: port authorities 1973 = net assets of $352 million yet engaged an amount of trade worth $5.3 billion!

Foreign Marketing Activities: “The Sun Never Sets on Cargill’s Corn” Cargill operates in 36 countries with 140 affiliates and subsidiaries Not only exports large amounts of U.S. grain but also buy and export grains from other nations such as: Argentina, France, Canada, Philippines, Japan, and West Germany In Europe, Cargill also run large shipping and transportation networks, own manufacturing subsidiaries, and have connections with large banks

A Multinational Industrial Corporation Cargill has become a major player in Western Europe’s vegetable oil and animal feed industries Took over a Canadian firm and expanded to feed mills and poultry breeding stock Cargill has broadened feed and food processing facilities into a number of third world markets as well Started working in South Korea to build an integrated poultry operation South Korean government put restrictions on foreign exchange of Korean Cargill

Cargill and the State Cargill has worked closely with many leading politicians, especially those of the Democratic Farmer Labor party in Minnesota Senator Hubert Humphrey: has been given money from Cargill, “for every campaign since he ran for mayor of Minneapolis.” Vice-President Walter Mondale: played a major part in U.S. deciding to buy grain company contracts with Soviet Union in 1980 U.S. President Richard Nixon Cargill officials: William Pearce helped to establish the blueprint of the U.S. agriculture in the 1970’s through the Williams Commission report The Department of Agriculture has departments that are also highly influenced by members of the Cargill corporation

Profiteering and the Future of the Grain Trade Cargill’s records for 1973 state that net assets increased from $246 million to $352 million Profits alone were $107.8 million Cargill is the largest private grain exported in 4 of the world’s 5 leading export nations Cargill is expanding current U.S. agriculture market share, as well as diversifying to regions outside of the agriculture sector to protect itself

Conclusion “Exploiting people’s most fundamental needs and making enormous profits in the process, firms like Cargill vividly illustrate the basic injustices of capitalism.... To protect itself, Cargill will strive to maintain the veil of secrecy and attempt to use friendly politicians and bureaucrats as a protective shield. But in the long run its insatiable quest for profits and markets can only increase the discontent felt by working people in the U.S. and abroad”