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article imageAs The World Gets Hungrier The Big Name Food Companies Get Richer

By KJ Mullins     May 5, 2008 in Food
The world food crisis is beginning to accelerate sending millions of people to the brink of starvation. As the world faces food prices so high that people are facing hunger mega agribusinesses are making a killing.
Something is not right here. With the price of wheat, corn and rice soaring how can the profits for the food companies be at an all time high?
Cargill is one of those companies that is going full steam ahead. Their net earning in the first quarter of 2008 went up by 86 per cent from $553m to $1.030 billion.
Archer Daniels Midland is the world's largest processor of soy, corn and wheat. It would be safe to assume that they are suffering as much as the 100 million people in the world who face severe hunger. You'd be wrong if you believed that. The companies net earning rose 42 percent in the first quarter this year going from $363m to $517m. The grains merchandising and handling operations jumped from $21m to $341m.
What the heck is going on here?
Mosaic Company is one of the world's largest fertiliser companies. Over the past year the price of some of their products tripled over last year. Because of the higher price developing countries are having a hard time being able to afford their fertiliser. The company has to be suffering right along with those who are struggling to have one small meal a day, right? Wrong. The first quarter of the year saw a 12-fold rise in income going from 42.2 million dollars to 520.8 million.
Something stinks more than the manure here.
As demands increase the big food companies pockets are getting stuffed with green. World food stocks are at a record low and yet the companies that profit from this are at a record high.
Cargill says that its results "reflect the cumulative effect of having invested more than $18 billion in fixed and working capital over the past seven years to expand our physical facilities, service capabilities, and knowledge around the world".
As the world struggles to deal with the increasing food crisis these companies can expect to only gain more monies. Supply and demand are making the rich much richer as the poor starve to death on the street.
More about Cargill, Mosiac, Food prices
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