America's largest private company has a hand in much of what you eat
It is 88% family owned and moves from seed to ships to meat, but a survey found few people could explain it.
My First Million · The oldest trick in the book to make your first millionCargill has been America's largest private company for 40 years, yet most people cannot describe what it does.
The company is 88% owned by one family. That family has produced more billionaires than any other family-owned company. Its revenue is more than Nike, Starbucks, and Goldman Sachs combined.
Its sprawl is part of why it is hard to grasp, and each step is another place where it earns money. It sells farmers seed and fertilizer, buys and stores grain, moves it on its own barges and ships, turns it into feed, slaughters cattle, and packs meat. It sells salt to fast food chains, while its corn syrup goes into ketchup, its soybean oil is used for fries, and its starch is used in milkshakes.
A 1980 survey found 94% of farmers had heard of Cargill but only half knew what it did. Among politicians, lawyers, and journalists, half had heard of it, and only 10% understood the business.
Questions people ask
What exactly is Cargill's core business?
Cargill buys, stores, transports, processes, and trades farm products, especially grain and oilseeds, and processes them into feed, food ingredients, and meat. It also provides seed, fertilizer, and salt, and runs related shipping and meatpacking operations.
Why has Cargill stayed private for so long?
Staying private lets the family reinvest most profits instead of meeting quarterly earnings expectations, and it avoids public disclosure. The source describes an 80/20 rule, with 80% of profits reinvested and 20% paid to the family.
How big is Cargill in dollars?
Cargill reports annual revenue around $160 to $180 billion in recent years, larger than many famous public companies. Because it deals in high volume, low margin commodities, huge sales do not mean equally huge profits.