Attentive to the constant changes in the market and on the planet, Cargill strives to bring innovations and strategic changes to all its operations. In this sense, we had important renovations in 2018, with significant changes that are already enabling us to achieve excellent results during the fiscal year: a 33% growth over the previous year, the milestone of half a billion reais in net income, and net operating revenue of approximately R$ 47 billion.
With this vision – which follows trends and values sustainability, our partners and customers, always combining the soundness of our activities with the ability to reinvent ourselves – we have kept a leading position and excellence in the agricultural and food sector in Brazil.
Among the innovations implemented this year, it should be noted that the Supply Chain area has undergone changes in the way it organizes its processes, activities, and talents, seeking to increase efficiency and more business opportunities. We have also incorporated a new global strategy in Human Resources, modernizing and redesigning the structure, processes, and systems of this area. The restructuring aligned all activities from HR to EHS (Environment, Health, and Safety), which integrated its programs into all of the company’s businesses.
Another innovation was the review of the GPS (Game Plan for Success), which now operates in version 2.0, with a greater emphasis on the customer. The update was intended to refine and guide our strategic direction for the coming years.
Among the actions aimed at the sustainable use of natural resources, one major highlight was the launch of the South America Sustainable Soy Policy and the Commitment on Human Rights, as well as the updating of the Policy on Forests. Through these measures, we have reinforced our commitment to protecting forests and promoting sustainable agricultural development across all of the company’s production chains. In addition, a project was implemented at the Starches and Sweeteners unit in Uberlândia (MG), through which we intend to achieve a 30% reduction in water use at this plant. This target corresponds to the daily consumption of a city with 17,000 inhabitants.
In 2018, significant investments were also made, totaling approximately R$ 520 million in the consolidation of acquisitions, projects and improvements to the plants, creating 100 new jobs. In the last eight years, our contributions totaled R$ 5.2 billion in the search for more efficient operations. We are also continuously looking for strategic opportunities in our market of operation. In 2019, we intend to invest approximately R$ 550 million in a new HM Pectin plant in order to strengthen and diversify our portfolio in Brazil and worldwide.
Also throughout the year, the impacts of the implementation of the new freight road haulage table for the country gave us the opportunity to rethink our logistics structure, seeking greater integration in our business operations.
Attention to customer satisfaction is another key topic for the year. In this sense, Cargill’s consumer area presented several innovations: restructuring of the Elefante brand’s visual and verbal language, the launch of new salad dressings and olive oils, the launch of a new line of the Nutron brand mineral supplements, and the launch of Rapid Neopigg, a customized solution for pig raising in the nursery stage.
This was also the year of celebration of the 45th anniversary of the Fundação Cargill, a significant milestone in our history. To celebrate it, we delivered even more improvements to society: nine projects selected through a call notice received contributions from R$ 50,000 to R$ 200,000 to carry out works involving social transformation and value generation in the food chain, which will directly benefit over 2,000 people.
In the context of diversity and respect for differences, we remain committed and working to make Cargill increasingly inclusive. Our Diversity Committee has networks that articulate and develop essential actions in this area: AfroCargill, for race/ethnicity equality; Pride, for the promotion of a safe environment and appreciation of LGBTI+ professionals; MOB, the acronym for the Mulheres Operando no Brasil (Women Operating in Brazil) network, whose mission is to encourage women and their potential for growth and leadership within the company; and the recently-created IN network, aimed at persons with disabilities. In recognition of our performance, we were awarded in the agribusiness sector by the Exame Diversity Guide 2019, which identifies the best inclusion and diversity practices adopted by Brazilian companies.
Thus, with all these achievements in fiscal year 2018/2019, Cargill reinforces its vision to nourish the world in a safe, responsible and sustainable way, in partnership with farmers, producers, manufacturers, retailers, governments, and other organizations, in order to fulfill its purposes in an efficient way and help communities thrive.
Finally, we would like to thank all of Cargill’s employees, customers and business partners, whose support has been crucial in achieving the expected results. With a team prepared to handle possible industry fluctuations and carry out the company’s activities with quality, we follow our paths with confidence. I would like to invite everyone to learn more about our actions and performance in the following chapters.
Enjoy your reading!
Luiz Pretti
President of Cargill in Brazil