Cargill Inc. the world’s leading global agricultural commodities trading company is likely to exit from its sugar trading business. The company is in talks with the Brazilian partner Copersucar SA to sell its 50% stake in Alvean, the world’s largest sugar trader.
The information has been shared by the Copersucar SA stating that the details would be revealed once the deal is concluded.
According to sources close to the development the deal if successful would be announced in the first quarter of the year.
After concluding the deal, Copersucar will be the sole owner of the Alvean.
Cargill is focusing on expanding its beef production business across the world.
The company accounted for about 20% global shipment in 2019-20 but with the soaring sugar prices and lowering sugar supply since 2017, the investors are shifting to other commodities. The sugar traders are facing challenges owing to lower bumper crop and depressed volatility.
After Cargill, Daniels-Mdland Co. Bunge Ltd, another big trading firm has stated that it plans to exit the sugar business. The company had formed a joint venture with BP Plc for sugar and ethanol.