Global commodities trader Cargill reported a 6% fall in its quarterly profits, blaming lower poultry sales and a weak grain environment for the downturn.
The firm, which saw net income decline from $986m (€822.28m) to $924m (€770.58m) in the quarter ending November 30, also reported an 8% decrease in adjusted operating earnings.
The company said its global poultry business trailed the year ago quarter, as good performances in south east Asia were offset by softer earnings elsewhere.
It added that pre-season marketing by the US turkey business drove whole-bird sales in advance of the Thanksgiving holiday.
Cargill has been trying to diversify its operations in the light of the global grain glut, which have brought down prices.
It announced investments of about $1bn during the second quarter, including acquisitions, joint ventures and investments in facilities, particularly in animal nutrition. These included the purchase of Diamond V, a developer and manufacturer of natural feed additives and Delacon, a leading maker of natural, plant-based feed additives.
The company also mentioned the joint venture with UK-based Faccenda Foods, which once completed, will serve the UK’s food retailers and foodservice companies with fresh chicken, turkey and duck.
Faccenda filed annual results (5 Jan) for the 2017 financial year, which saw top line growth flat at £520m (€433.66m), although operating profits rose from £7.7m (€6.42m) to £11.7m (€9.76m) in a ‘challenging market’.