America’s biggest grain trader Cargill will cease selling agricultural products known as crop inputs to farmers in the Central and Eastern Europe region by the end of May 2016.
According to a press release on Wednesday, this change will affect Cargill’s businesses in Hungary, Romania, Russia, Slovakia, Ukraine, Bulgaria and Poland.
“Going forward, the company will refocus its attention on its grain and oilseeds origination, merchandizing and trading activities in these markets. These changes will impact roles and employees that are currently dedicated to these activities and is expected to potentially impact around 180 people across the countries involved in crop input activities,” the release reads.
The global agribusiness player continues to cut back operations in the face of sliding commodity prices.
Crop inputs refer to products including seeds and fertilizer that farmers use to produce crops. Cargill did not specify which inputs it sells in the Black Sea region.
The company “has been unable to realize many of the expected synergies between origination and crop inputs” in the region, the statement said.
Cargill last year launched a restructuring that included job cuts. Last month, the company said it would close its London shipping office.
“The Black Sea region remains a key focus for strategic growth and Cargill will continue to strengthen its existing investments and operations, including its network of port terminals and oilseed crush plants in the region. Cargill remains committed to Central and Eastern Europe and its agricultural sector. This change will allow the company to continue focusing on being the trusted partner to both farmer and non-farmer suppliers and to grow its business by increasing the volumes of grain and oilseeds,” the grain trader pointed out.