Harvest of Profits: The world Empire of Cargill, Inc.

1. Harvest of Profits: The world Empire of Cargill, Inc. Jasmine Paron

2. Intro • Cargill, Inc. is the largest privately owned U.S. corporation • Based in Minnesota • Buy and sell commodities worldwide • Operate manufacturing plants • Feed, grain, salts, soybeans

3. Cargill’s Corporate Origins • 1800’s • William D. Cargill and sons bought an interest in grain elevators • Grew with financial backing and buying out other grain elevators • Owned so many elevators, farmers had to accept fixed price for their grain • Monopolistic trading conditions

4. Cargill’s Corporate Origins • 1900’s • MacMillan family entered into Cargill corporation • Expanded grain business East which completely integrated trading network and began foreign operations • Profited in WWll and extended part grain trade • Post-war profited

5. Government Support: Public Law 480 • Established this legislation so government could continue grain expansion • Results for Cargill • Enabled them to increase export sales • Opened direct commercial sales, “taught people to eat wheat who didn’t eat it before” • Commodity Credit Corporation • 1-3 year loans with foreign governments to purchase extra grain reserves while, at the same time, a Barter program exchanged grain for war materials • Thus provided a subsidy for U.S. exports

6. Cargill’s Domestic Structure • Railroads • Cargill operates grain collection, grain distribution, and elevator located at railroad ports • Monopoly capitalism • Storage payments from CCC • Interstate commerce commission didn’t stop growth • Rivers • Increase shipping to other states • Grain companies control grain transport system making it impossible for other companies to stay in business. Also effects farmers, they have fewer options to sell their grain to

7. Financing the Cargill Empire • Banks • Credit lines with over 40 different banks • Insurance companies • Extended loans • Take away • Controls grain transportation • Storage payments • Small amounts of capital are used to control vast grain empires

8. Foreign Marketing Activities • Operations in 36 different countries • Canada • Undermines local grain corporations and small scale farmers • Philippines • Cheap labor • West Europe • Control export/import facilities • Overall • Some countries have moved away from PL:480 and found other ways of attaining U.S. grain

9. A Multinational Industrial Corporation • Subsidiaries • Have other corporations in the Global South • Argentina • Brazil • Korea • Able to do this with • an amendment to PL:480 • Allows Cargill to use local currency from the proceeds of PL:480 sales to finance the establishment of local subsidiaries • Financial backing • Friendly environment • Proper legal systems

10. Cargill and the State • Majority republican officials • Connections with MN senator Hubert Humphrey and Richard Nixon • Cargill officials serve in government positions • Sections of the Department of Agriculture has ties to grain trade

11. Profiteering and the Future of the Grain Trade • World price of grain rose extremely high • Farmers are forced to accept a fixed price for grain • Cargill is the largest grain exporter in 4/5 leading export nations • Involved in operations with no direct relation to grain trade • VERY SECRETIVE