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Cargill, Dreyfus Halt Brazil Soy Plants as Margins Vanish

  • Too few soybeans to meet export commitments, needs of crushers
  • Profit also hurt as chicken producers buy less soy-based feed
Updated on

Cargill Inc. and Louis Dreyfus Co. are among the companies that have stopped some processing of soybeans in Brazil, the world’s biggest exporter of the commodity, amid a domestic shortage and vanishing profit margins.

Cargill has idled its Primavera do Leste plant in Mato Grosso and Tres Lagoas factory in Mato Grosso do Sul, according to people familiar with the matter who asked to not be identified because information hasn’t been made public. The Minneapolis-based company has six facilities in Brazil that crush soybeans to make vegetable oil and animal feed.